Article
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Dynamics Between Bitcoin Market Trends and Social Media Activity
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Version 1
: Received: 1 July 2024 / Approved: 1 July 2024 / Online: 2 July 2024 (10:08:36 CEST)
How to cite: Vlahavas, G.; Vakali, A. Dynamics Between Bitcoin Market Trends and Social Media Activity. Preprints 2024, 2024070112. https://doi.org/10.20944/preprints202407.0112.v1 Vlahavas, G.; Vakali, A. Dynamics Between Bitcoin Market Trends and Social Media Activity. Preprints 2024, 2024070112. https://doi.org/10.20944/preprints202407.0112.v1
Abstract
This study examines the relationship between Bitcoin market dynamics and user activity on the r/cryptocurrency subreddit. The purpose of this research is to understand how social media activity correlates with Bitcoin price and trading volume, and to explore the sentiment and topical focus of Reddit discussions. We collected data on Bitcoin’s closing price and trading volume from January 2021 to December 2022, alongside the most popular posts and comments from the subreddit during the same period. Our analysis revealed significant correlations between Bitcoin market metrics and Reddit activity, with user discussions often reacting to market changes. Additionally, user activity on Reddit may indirectly influence the market through broader social and economic factors. Sentiment analysis showed that positive comments were more prevalent during price surges, while negative comments increased during downturns. Topic modeling identified four main discussion themes, which varied over time, particularly during market dips. These findings suggest that social media activity on Reddit can provide valuable insights into market trends and investor sentiment. Overall, our study highlights the influential role of online communities in shaping cryptocurrency market dynamics, offering potential tools for market prediction and regulation.
Keywords
Bitcoin; Market Dynamics; User Activity; Reddit
Subject
Business, Economics and Management, Other
Copyright: This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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