Social Media Sentiment Analysis in Forecasting Cryptocurrency Prices Michael Siek*, Gilbertus Priastian
Business Information Systems
School of Information Systems
Faculty of Computing and Media
Bina Nusantara University
Jakarta, Indonesia 11480
Abstract
Cryptocurrencies are decentralized digital currencies that have risen a lot in popularity in the past few years. These cryptocurrencies have skyrocketed in terms of price and volume as a result of the market^s excitement and trust in these so-called crypto because of their new capabilities that physical currencies (country-issued) do not have. To be able to predict these price fluctuations, two types of analysis must be performed, which are technical and fundamental analysis. This paper focuses on the fundamental analysis using Twitter social media market^s sentiment towards cryptocurrency prices. The implementation of VADER (Valence Aware Dictionary and sEntiment Reasoner) as sentiment analyst from real-time tweets can provide high confidence on short-term cryptocurrency price forecasting.
Keywords: Social network analysis, currency price dynamics, fundamental analysis, real-time data acquisition
