As per the Southern Methodist University’s research paper, the volume of Google Search Volume Index (SVI) and tweets perceived to influence price indicators for Ethereum and Bitcoin.
In other words, the study revealed that the number of Google searches and tweets switches first ahead of crypto prices.
Outcomes of the Study
Tweet data acquired by VADER (Valence Aware Dictionary and Sentiment Reasoner) was of the year 2014, through the website – bitinfocharts.com. Whereas, Google trends data (SVI) was collected from the year dating back to 2004. Data scaled was in the proportion of the course to all searches on all topics for the terms – Ethereum and Bitcoin.
The researchers discovered that 21 million bots on Twitter posting frequently factual information on prices, spam, advertisements, and so on. Humans are not having real discussions about their interest either on Bitcoin or Ethereum.
The other problem that researchers uncovered with Twitter was that sentiment was mainly positive – also when the prices of both Ethereum and Bitcoin were depreciating.
For the Google trends data, the report by VADER noticed that the price was very similar with searches for the keyword Ethereum and Bitcoin. Also, the search spikes happened ahead of the actual hike in prices.
Further, applying machine learning, the outcomes from the tweet data and Google trends was likewise put into a linear model to confirm the positive similarities. The data was split among a testing and training model in 80% and 20% split.
Thus, such data from social media platforms could offer some relevant info for investors in assessing market sentiment.