Quite naturally, social media comments exert influence over cryptocurrency prices but according to a new study, the vocal minority of frequent posters do not have the most influential voices. You’ll find the details in today’s edition of Bitcoin in Brief. Also, a new coin will be airdropped to football fans and players at the World Cup and new Bitcoin ATMs have been installed in Russia and Africa.
Also read: Bitcoin in Brief Tuesday: New Patents, Research Centers and a $300M Fund
Social Media’s Silent Majority Moves Crypto Markets
Public sentiment, expressed on social media, has the power to manipulate the value of bitcoin, a new study reveals. The recently published report by the Stevens Institute of Technology explores and verifies the effect of social networks on cryptocurrency prices, detecting a link there.
Researchers claim that periods of predominantly positive social media commentary significantly influence crypto markets and are actually pushing bitcoin up or down. However, according to their paper, it’s not the vocal minority, but the silent majority that really moves crypto prices.
The scientists came to this conclusion after dividing tweeters and posters in two groups and finding that social media comments from very active users do not change market graphs so much. On the other hand, infrequent posters who comment on the crypto prospects exert much more influence on prices, especially when they are sharing positive opinions. It turns out prices change proportionally to their sentiments. According to Professor Feng Mai, who lead the study:
Vocal users of social media may sometimes have a certain agenda, in this case hyping or boosting the price of Bitcoin because they themselves have invested in it. So, if most of the social messages around Bitcoin are generated by people who
