Using Sentiment Analysis to Determine if the Twitter Bitcoin Community Can Actively Influence the Price of Bitcoin
Date of Submission
Campus Only Senior Thesis
Bachelor of Arts
Professor Mark Huber
2023 Nicholas M Wilson
Twitter is one of the most popular social media platforms there is. With over 436 million monthly active users and over 550 million tweets every day, there are many personal opinions located on one platform. The year 2009, three years after Twitter’s inception, marked the first instance of using this platform for something that was not just to tweet your thoughts, but to use Twitter to improve market performance. StreamBase, a high frequency trading firm, was the first company to implement measures of using Twitter as a form of research for investing. Fast forward to today, we have seen instances where Elon Musk would tweet and then Tesla’s stock price would either skyrocket or tank depending on what he says.
Now that it has been established that commentary on Twitter can greatly impact what occurs in the markets, this thesis looks to focus on the Bitcoin community and determine if their sentiment, or the way they feel about Bitcoin, has any impact on Bitcoin’s price. After narrowing down billions of tweets from 2020, we were left with just under 100,000 tweets that mentioned Bitcoin and were able to be analyzed by our natural language processing package. Our research found that at a large scale, the long term sentiment of the Bitcoin community had a strong correlation with Bitcoin’s long term price. However, our research methods and data were inconclusive in determining if sentiment analysis on a daily scale had any impact on Bitcoin’s daily price action.
Wilson, Nick, "Using Sentiment Analysis to Determine if the Twitter Bitcoin Community Can Actively Influence the Price of Bitcoin" (2023). CMC Senior Theses. 3199.
This thesis is restricted to the Claremont Colleges current faculty, students, and staff.