Abstract:We present a textual analysis that explains how Elon Musk’s sentiments in his Twitter content correlates with price and volatility in the Bitcoin market using the dynamic conditional correlation-generalized autoregressive conditional heteroscedasticity model, allowing less sensitive to window size than traditional models. After examining 10,850 tweets containing 157,378 words posted from December 2017 to May 2021 and rigorously controlling other determinants, we found that the tone of the world’s wealthiest pe… Show more
“…The ndings of this study can conclude that Elon Musk's tweets played a signi cant role in in uencing the investors' opinion on Bitcoin, which led to the changes in its price movement. This nding also corresponds with the nding from (Huynh 2022). The results of the T&Y Bilateral Granger causality tests correspond with the ndings of the Johansen cointegration tests.…”
Section: Predictive Power Of Negative Twitter Sentiment On the Price ...supporting
confidence: 85%
“…Social media like Twitter has become an essential platform for millions of people to express opinions about all kinds of issues and topics, including their perspectives on investing in cryptocurrencies (Kraaijeveld and De Smedt 2020; Huynh 2022; Trigka et al 2022). In 2021, Twitter became a prime media site for news related to Bitcoin due to Elon Musk, the CEO of Tesla and the most in uential investor, who criticised Bitcoin heavily on Twitter (Huynh 2022). Researchers also increasingly acknowledge Twitter as a valuable resource for solving numerous issues (Kraaijeveld and De Smedt 2020).…”
Cryptocurrency investment especially Bitcoin, has become favourable over recent years due to promising returns in the future. However, the movement of price is mainly speculation-based as these currencies are still new in the market. The COVID-19 outbreak boosted research interest in predicting the price fluctuation of Bitcoin since cryptocurrency trading produced many millionaires. Five lexicon-based Twitter sentiment analysis approaches are examined to see the effect of Tweets on the price of Bitcoin during the pre- and post- COVID-19 period. Results show that negative Twitter sentiments affected the price of Bitcoin pre- COVID-19 and the second year of post- COVID-19 when Elon Musk actively criticised Bitcoin on Twitter.
“…The ndings of this study can conclude that Elon Musk's tweets played a signi cant role in in uencing the investors' opinion on Bitcoin, which led to the changes in its price movement. This nding also corresponds with the nding from (Huynh 2022). The results of the T&Y Bilateral Granger causality tests correspond with the ndings of the Johansen cointegration tests.…”
Section: Predictive Power Of Negative Twitter Sentiment On the Price ...supporting
confidence: 85%
“…Social media like Twitter has become an essential platform for millions of people to express opinions about all kinds of issues and topics, including their perspectives on investing in cryptocurrencies (Kraaijeveld and De Smedt 2020; Huynh 2022; Trigka et al 2022). In 2021, Twitter became a prime media site for news related to Bitcoin due to Elon Musk, the CEO of Tesla and the most in uential investor, who criticised Bitcoin heavily on Twitter (Huynh 2022). Researchers also increasingly acknowledge Twitter as a valuable resource for solving numerous issues (Kraaijeveld and De Smedt 2020).…”
Cryptocurrency investment especially Bitcoin, has become favourable over recent years due to promising returns in the future. However, the movement of price is mainly speculation-based as these currencies are still new in the market. The COVID-19 outbreak boosted research interest in predicting the price fluctuation of Bitcoin since cryptocurrency trading produced many millionaires. Five lexicon-based Twitter sentiment analysis approaches are examined to see the effect of Tweets on the price of Bitcoin during the pre- and post- COVID-19 period. Results show that negative Twitter sentiments affected the price of Bitcoin pre- COVID-19 and the second year of post- COVID-19 when Elon Musk actively criticised Bitcoin on Twitter.
“…He has – to our knowledge – not been engaged as a professional third-party endorser for other brands. His social media content includes posts about his professional expertise, his business field and the products and services of his companies (Ante, 2021; Huynh, 2022). Therefore, Musk fits the definition of an influential entrepreneur formulated by Guiñez-Cabrera and Aqueveque (2022).…”
Purpose
Drawing on the example of car manufacturer Tesla and its early investor Elon Musk, the purpose of this paper is to explore the connection between the personal communication activities of influential entrepreneurs on social media, the emergence of parasocial interactions (PSIs) and the related communication outcomes for the company.
Design/methodology/approach
This paper conducted an online survey, recruiting 207 participants via purposive sampling. Partial least square path modeling and an independent t-test were conducted to test hypotheses.
Findings
The results of this paper show that following entrepreneurs’ personal social media activities amplifies PSIs, which in turn positively impact the company's communication outcomes. Organization–public relationships and purchase intentions are improved by PSI.
Originality/value
To the best of the authors’ knowledge, this is one of the first studies that connects the personal and the organizational level in exploring entrepreneurial marketing. The results show that Elon Musk acts as an influential entrepreneur to effectively promote communication outcomes for Tesla. This paper illuminates the potential of entrepreneurs’ personal social media activities to support the success of their ventures.
“…There is certainly no doubt that social discourse on the internet has the potential to sway consumer choice as is evident in another case where Elon Musk merely tweeting the hashtag #bitcoin in one of his tweets the same month ushered in an increase of about $5,000 in the price of Bitcoin, increasing the overall market capitalization for the entire crypto market (Huynh, 2022).…”
Section: Influencing Consumer Behaviour Through Discoursementioning
confidence: 99%
“…Coupled with the inability to shop at retail stores and the lack of mobility of average consumers during the Coronavirus outbreak and the lockdowns that followed, the discourse that followed this one event in time led to a compounding effect in inflating the value of Bitcoin. Although researchers like Ante (2022) and Huynh (2022) have tried to correlate Musk's ability to sway Bitcoin trade as the singular and admirable quality of the billionaire, what they've largely failed to realise is that his tweets do not account for much more than the ignition for a much broader discourse that then builds an overarching sentiment driving consumer choice.…”
Section: Volatility Of Bitcoin In Line With the Twitter Discoursementioning
This study is going to determine whether the sentiments in Twitter discourse about Bitcoin have an influence on the overall market and pricing of Bitcoin trades. The study aims to reveal the correlation between the volatility of the price of Bitcoin and how it relates to the sentiments in Twitter discourse. A large dataset of tweets mentioning Bitcoin has been amassed from the Twitter API between the months of February and July 2021, which will then be analysed against the Bitcoin trade performance. For this study, different predictive and descriptive models were applied that are equally important for data analysis. The sentiment for overall daily discourse has been categorised into three polarities, i.e., positive, neutral and negative using the VADER sentiment analysis. The overall polarity is then derived from a compounded and normalised dataset of each of the above-mentioned valencies for any given day. By utilising this study, it is hoped that potential Bitcoin buyers may make better and informed decisions about their purchases and that this study could be generalised to a broader analysis of social media discourse and how such means of communication could be used to drive consumer choice. Our results unequivocally prove that Twitter sentiments have a slight impact on the price and trading volumes of Bitcoin but the cryptocurrency has a unique way of sailing the storm of negative sentiments
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