What drives cryptocurrency prices? An investigation of Google trends and telegram sentiment?
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Cryptocurrency prices are influenced by various factors, including internet search volumes and sentiment analysis on social media platforms. Research has shown that the relationship between cryptocurrency price movements and search volumes obtained from Google Trends is not consistently positive, with negative correlations detected for Bitcoin and Ethereum during June 2018 . On the other hand, sentiment extracted from cryptocurrency investment groups on Telegram has been found to be positively correlated to Bitcoin and Ethereum price movements, especially during periods of high volatility . Additionally, narratives conveyed through microblogging platforms like Twitter have been linked to crypto prices, with topics such as financial investment, technological advancement, regulations, and media coverage showing a strong connection . Sentiment analysis has also been used to predict cryptocurrency price direction, with successful results in forecasting based on positivity/negativity, fear, uncertainty, and bullishness/bearishness sentiments . Furthermore, Google Trends has been found to impact cryptocurrency prices, particularly for Litecoin, Bitcoin, Ripple, Ethereum, and NEM .
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| Papers (5) | Insight |
|---|---|
25 Jan 2019 39 Citations | The paper investigates the relationship between cryptocurrency prices and Google Trends search volumes and Telegram sentiment. It finds that Telegram data is a better predictor of Bitcoin price movements, while Google Trends is a better predictor for Ethereum. |
Open access•Posted Content 5 Citations | The provided paper does not investigate the relationship between cryptocurrency prices and Google trends or Telegram sentiment. The paper focuses on the use of sentiment analysis to predict cryptocurrency price direction based on positivity/negativity, fear, uncertainty, and bullishness/bearishness in the financial markets. |
4 Citations | The provided paper does not investigate the impact of Telegram sentiment on cryptocurrency prices. It focuses on the impact of Google Trends on cryptocurrency prices. |
| The provided paper investigates the relationship between narratives on Twitter and cryptocurrency prices, but it does not mention Google trends or Telegram sentiment. | |
| The provided paper investigates the relationship between narratives on Twitter and cryptocurrency prices, but it does not mention anything about Google trends or Telegram sentiment. |
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