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Impact of social networks on the price of bitcoin (BTC)

Impact of social networks on the price of bitcoin (BTC)

If the concept of cryptocurrency already existed in the 80s, bitcoin (BTC) is still the one that was able to stimulate the development of digital assets. Since its creation in 2009, bitcoin has always attracted the interest of all stakeholders: investors, regulators, creators of exchange platforms, traders and even detractors. It translates a lot through content on social networks. The number of posts, comments, references and shares, as well as the tone used, known as social sentiment, influence the bitcoin market according to analysts.

Encourage bitcoin buying momentum (BTC)

Does social sentiment influence the price of bitcoin? If we go back a few years, we would have been told in the conditional: yes, it’s possible. But today, the question no longer arises. It is a certainty. The whole thing is to know how much bitcoin-related publications can influence the price of this digital asset. As a reminder, social attitude refers to the perception of a product, a brand or the perception of it, expressed through publication, comment, share, mention on social networks (TwitterReddit, Telegram, Facebook, LinkedInā€¦).

The amount of references and references to bitcoin on social networks reflects the public interest in this virtual currency. This enthusiasm can arouse the curiosity of the average potential investor. Following this same pattern, the price of bitcoin rises, often in parallel with increased investor activity on social media. This is especially true when the market moves from a downturn to a bullish market. To put it simply, the rising price of jobs increases, which increases the buying momentum.

Influencing investment decisions

A few studies on social attitudes show the clear impact of posts on Twitter. These sentiments greatly influence the dynamics of the market. Because of these topics that would inspire bitcoin on social networks, people outside the cryptosphere would also be investors. Studies on the subject show that the rise in publications has an impact on investment decisions. Inspired by the publications, people will buy bitcoin. These investors who show their enthusiasm for the networks will bring others into the ecosystem.

Traders will then sell assets to newcomers. So the market will continue to grow until it reaches a stagnation point. From there, for fear of the downturn, new investors will sell their assets at a loss to seasoned traders. The cycle will then be in a trough before it rises so the cycle will change indefinitely.

Conclusion

an social feeling influence the interests of potential investors, but not only. This same factor could be used to empower investors to make more informed investment decisions, taking into account the state of the bitcoin market. Certainly, investor sentiment influences stock prices.

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Emile Stantina avatar

Emile Stantina

With a passion for blockchain technology and cryptocurrencies, we contribute to the popularity and democracy of this new world. “Chancellor on the verge of a second rescue for banks”

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