Assessment of the relationship between social media activities and the bitcoin price

Abstract

In this paper the relationship of social media activities and the Bitcoin price is analyzed. Bitcoin currency is the most popular and biggest, by market capitalization, cryptocurrencies out of all and can definitely be a very successful investment, yet has quite a mixed reputation due to very high risk. Determining the impact of Social media activities on its demand is very important because cryptocurrencies can arguably someday replace traditional financial systems.The findings of this paper could be used for potential crypto-investors, by proving that social media activities is one of the main price determinants of the Bitcoin and, most likely, other cryptocurrencies. The finding can also be used for other further researches regarding the Bitcoin price predictions.