Trading the dream: Does social media affect investors' activity - The story of Twitter, Telegram and Reddit

Abstract

Bitcoin has received much attention in the media and by investors in recent years, although there remains scepticism and a lack of understanding of this cryptocurrency. I add to the literature on Bitcoin by studying How and if social media platforms such as Twitter, Telegram and Reddit are affecting Bitcoin's prices and volume. Findings confirm that volumes of exchanged tweets may predict the fluctuations of Bitcoin's prices and mainly Bitcoin volume. I also find that Reddit and Telegram have greater impact on Bitcoin volume rather than Twitter. Results indicate that information about the use of Twitter and other social media platforms can assist in tracking real world behavior and may even predict real financial markets trend.