Application of Sentiment Analysis and Machine Learning Techniques to Predict Daily Cryptocurrency Price Returns
Researcher ORCID Identifier
Date of Submission
Open Access Senior Thesis
Bachelor of Arts
© 2022 Edward Z Wu
This paper examines the effects of social media sentiment relating to Bitcoin on the daily price returns of Bitcoin and other popular cryptocurrencies by utilizing sentiment analysis and machine learning techniques to predict daily price returns. Many investors think that social media sentiment affects cryptocurrency prices. However, the results of this paper find that social media sentiment relating to Bitcoin does not add significant predictive value to forecasting daily price returns for each of the six cryptocurrencies used for analysis and that machine learning models that do not assume linearity between the current day price return and previous daily price returns combined with previous daily sentiment scores were more accurate than machine learning models that assume linearity.
Wu, Edward, "Application of Sentiment Analysis and Machine Learning Techniques to Predict Daily Cryptocurrency Price Returns" (2023). CMC Senior Theses. 3220.
Data Science Commons, Econometrics Commons, Finance Commons, Longitudinal Data Analysis and Time Series Commons, Statistical Models Commons