Using sentiment analysis to predict interday Bitcoin price movements

Purpose The purpose of this study is to measure the interaction between media sentiment and the Bitcoin price. Because some researchers argued that the Bitcoin value is also determined by perception of users and investors, this paper examines how. Design/methodology/approach The database of relative news articles as well as blog posts has been collected for the purpose of this research. Hence, each article has been given a sentiment score depending on the negative and positive words used in the article. Findings This paper has identified that interaction between media sentiment and the Bitcoin price exists, and that there is a tendency for investors to overreact on news in a short period of time. Originality/value While sentiment analysis of Twitter posts as a predictor of the Bitcoin price has been conducted in the past, this research does not have any analog because psycho-semantic dictionaries have not been applied earlier in the Bitcoin research.