Vulnerability of Cryptocurrency Markets: A Study of the Relationship Between High-Impact Users and Bitcoin Market Price Volatility

Abstract

While the blockchain cryptocurrency market is becoming increasingly sought after, the vulnerability of the crypto market has also been brought to the attention of some academics. Based on cryptocurrency price data in TradingView database, this paper studies the effect of high-impact users' comments on bitcoin price volatility in social media. The results show that when the Bitcoin market is in the listing channel, high-impact user speech does not bring significant abnormal returns. When Bitcoin market is in a downward channel, High-Impact community leaders' empty talk produces significant negative returns.