Social news aggregations and the bitcoin

Abstract

Social media and financial markets are ecosystems bound to interact and overlap more and more. For example, cryptocurrencies, Bitcoin in the first place, have long been among the hottest topics on social media. Here we illustrate a methodology for correlating Bitcoin price trends and social media that operates on the aggregation of news from multiple social networks as typically occurs on dedicated channels in sites such as Reddit. For this purpose, we define general laws to map the financial fluctuations of Bitcoin in a space defined on three dimensions: content volume, sentiment and time. These laws provide the foundation upon which to build effective methodologies for social media-based prediction of Bitcoin performance.