Analyzing impact on bitcoin prices through Twitter social media sentiments

Abstract

Many cryptocurrencies exist in today's date, and many more are on the verge of being brought into circulation. It is a form of a digital currency but instead of being run by a centralized authority and government, it is a decentralized structure that is created using blockchain technology. These currencies are highly influential and unpredictable with their factors of influence ranging high and low all over the world. This research revolves around the most well-renowned cryptocurrency which is Bitcoin. The focus here is on the discussion around the relationship of bitcoin with the prominent online media platform called Twitter. Twitter has been taking part in the discussion of almost all major as well as related incidents and events all around the world. It is a social media platform that is informative as well as useful for the public so much, that even major personalities, as well as politicians, take to the platform in order to express their views quickly on an important matter. The research included firstly gathering the tweets and was divided into two parts - Verified and Non-Verified users and then a cleaning process was done on the data to make sure that only the desired and necessary data if left for further research. The tweets regarding bitcoin were analyzed and utilized for a deeper observation so that the sentiment can be extracted and can be visualized against the bitcoin prices to derive a conclusion regarding the relationship between Twitter and Bitcoin prices. The analysis returned a lot of insights as well as inference relating to the influence that the Bitcoin prices and related tweets have on each other. The results of the report mention the outcome of the analysis that was found stating the original hypothesis to be true or not