StockTwits Launches Alternative Data Set for Crypto

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Compared to the S&P 500 Index, gold, and the US Dollar Index, Wang and Wang found that Bitcoin market efficiency is more resistant throughout the plague, supporting its safe-haven asset quality. Melki and Nefzi reported that Ethereum is the strongest safe-haven for commodities, while Ripple has performed as a hedge asset to the Forex market throughout the contagion. Jiang et al. additionally showed that Stellar and Bitcoin are outstanding alternatives to hedging assets for individual and institutional stockholders. Guzmán et al. found that declines in movement worldwide lifted the traded volume of Bitcoin throughout the pandemic. Baur et al. reported that Bitcoin is uncorrelated with conventional assets, such as stocks, bonds, and commodities, in regular periods and across financial meltdowns. Bouri et al. reinforced that Bitcoin can behave as a safe-haven against global financial stress from a medium-term standpoint, while Corbet et al. noticed an increased liquidity of the cryptocurrency market after the official declaration of the pandemic.

First, there has been a heated debate about cryptocurrencies’ diversifier, hedge, and safe heaven qualities. Second, the literature regarding the impact of severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2) on cryptocurrency returns reported conflicting results. Third, various proxies for investor sentiment proved to be significant drivers of Bitcoin price. Finally, most research findings reported an expansion of herding behavior throughout the pandemic period. According to Trichilli and Abbes , COVID-19 data serve as a valuable device permitting forecasting of returns of cryptocurrencies, commodities, and stock markets.

Additionally, the results of the Wald test show that the long-term asymmetric impact on Bitcoin returns is statistically significant only in the cases of PI and II. If the 0 line is situated among the lower and upper bands, the asymmetric effects of the pandemic indices on Bitcoin are not significant at the 5% level. For instance, Trichilli and Abbes claimed that Bitcoin is a safe-haven asset that should be integrated with commodities and equities for stronger asset allocation and hedging efficiency before and during pandemic cycles.

Recently, the Bitcoin Cash network launched its sidechain smartBCH that offers full EVM compatibility, enabling applications and protocols running on the Ethereum network to run seamlessly on the Bitcoin Cash network. BCH touched its all-time high of $4,112.39 on December 20, 2017, with its total market capitalization jumping past $66 billion. Square CEO Jack Dorsey is a Bitcoin permabull, oftenunderscoring the importance of the blockchain.

Spectral causality analysis

An economic individual does not constantly act reasonably because their judgments are altered by beliefs (Huynh et al. 2021). Poor tempers and distress may influence investor choices, such as tense individuals losing hope concerning upcoming returns, inclining them to take less risk . Positive feedback trading or trend chasing implies that investors buy securities when prices increase and sell when prices go down (Long et al. 1990), while negative feedback or contrarian trading implies buying after price decline (Cutler et al. 1990). King and Koutmos identified a discrepancy in trading design, namely trend chasing for Bitcoin, Ethereum, XRP, and Cardano, but contrarian trading for EOS and Stellar; hence, Agosto et al. proved that sentiment is crucial in early warning bubble signals. Wu W, Tiwari AK, Gozgor G, Leping H. Does economic policy uncertainty affect cryptocurrency markets? Umar Z, Gubareva M. A time–frequency analysis of the impact of the Covid-19 induced panic on the volatility of currency and cryptocurrency markets.

The week not only taught investors to invest carefully, but it also busted many myths about the cryptocurrency market. Stocktwits launched in 2008 as a platform for retail traders to discuss stocks. Now, the social-media platform will enable trading in equities through its wholly owned subsidiary and registered broker-dealer ST Invest. Yen K-C, Cheng H-P. Economic policy uncertainty and cryptocurrency volatility. Yarovaya L, Matkovskyy R, Jalan A. The effects of a “black swan” event (COVID-19) on herding behavior in cryptocurrency markets.

When both cryptocurrencies were enjoying their honeymoon period a month ago, who would have thought they would face such a steep fall? The weak sentiment spread across the crypto market resulted in investors withdrawing their money, causing Tether to lose its peg to the dollar. Wołk K. Advanced social media sentiment analysis for short-term cryptocurrency price prediction. Kakinaka S, Umeno K. Exploring asymmetric multifractal cross-correlations of price–volatility and asymmetric volatility dynamics in cryptocurrency markets. Dias IK, Fernando JMR, Fernando PND. Does investor sentiment predict bitcoin return and volatility? National uncertainty is essential in Bitcoin investors’ decision-making since most of its related trading volume and holders are condensed in a few nations (Wu et al. 2021a).

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Cryptocurrencies are free of government manipulation (Gaies et al. 2021), but Bitcoin cannot ensure monetary stability, showing high volatility (Cachanosky, 2019; Anamika et al. 2021) and no fundamental value (Cheah and Fry 2015; Mnif et al. 2022). For instance, Easley et al. emphasized that the Bitcoin setting is shifting to a more market-based structure that can adjust to varying economic situations; however, the lack of regulation and transparency contributes to the market’s uncertainty . Hence, like AlNemer et al. , investor sentiment might exert a pivotal role in predicting Bitcoin price variations (Eom et al. 2019).

Kraaijeveld O, Smedt JD. The predictive power of public Twitter sentiment for forecasting cryptocurrency prices. Huynh TLD, Foglia M, Nasir MA, Angelini E. Feverish sentiment and global equity markets during the COVID-19 pandemic. Fasanya IO, Oyewole OJ, Oliyide JA. Investors’ sentiments and the dynamic connectedness between cryptocurrency and precious metals markets. Béjaoui A, Mgadmi N, Moussa W, Sadraoui T. A short-and long-term analysis of the nexus between Bitcoin, social media and Covid-19 outbreak. Aharon DY, Demir E, Lau CKM, Zaremba A. Twitter-Based uncertainty and cryptocurrency returns.

The centralized stablecoins like Tether , which are often criticized for insufficient cash reserves, look helpless in times of crisis. The bloodbath spread over to the other stablecoins, such as Tether , the largest stablecoin, which lost its peg to the dollar. However, the token is currently back on its track, trading at $1, according to coingecko.com. They are backed by fiat currencies like the US dollar, gold, and even other cryptocurrencies. For FTX, the engaged user base and social media following of Stocktwits would provide new reach and marketing opportunities. Bankman-Fried has already signed a rash of deals to raise FTX’s profile, including sponsorships with Major League Baseball, the NBA’s Miami Heat, esports outfit TSM, and No. 1 NFL Draft pick Trevor Lawrence .

Founded in 2009, StockTwits is a social media platform designed for the sharing of ideas between investors, traders, and entrepreneurs. StockTwits created the $TICKER tag to “stream” information around stocks and markets across the web. Today, StockTwits has approximately 1.4 million registered users, 600,000 of whom actively post thoughts or investment ideas about a company and its stock. For a number of years, StockTwits ETC has marketed investor sentiment data based on these online posts and conversations to some of the world’s largest asset managers to drive trading strategies. First, it is imperative to emphasize that our data set covers only Bitcoin returns.

Nguyen KQ. The correlation between the stock market and Bitcoin during COVID-19 and other uncertainty periods. Mgadmi N, Béjaoui A, Moussa W, Sadraoui T. The impact of the COVID-19 pandemic on the cryptocurrency market. Impact of macroeconomic news, regulation and hacking exchange markets on the volatility of bitcoin. Jiang Y, Wu L, Tian G, Nie H. Do cryptocurrencies hedge against EPU and the equity market volatility during COVID-19? A comparison between cryptocurrency and stock market dynamics during the COVID-19 pandemic. Plots of frequency domain Granger causality test from RavenPack coronavirus related indices to Bitcoin.

Bitcoin Cash Data Summary

The world’s second-largest cryptocurrency crossed the $4,700 mark following Bitcoin’s rally. Experts share how Bored Ape Yacht Club’s success has changed the NFT landscape for good. Stocktwits plans to expand its crypto trading services by launching U.S. equity trading and crypto derivatives trading in the coming months. According to sources, the regulator has been probing registered investment advisers over how they’ve offered crypto custody to their clients.

Güler D. The impact of investor sentiment on Bitcoin returns and conditional volatilities during the era of covid-19. The data regarding daily changes of Bitcoin price (BTC/USD – Bitcoin US Dollar) and daily change of Chicago Board Options Exchange volatility index was extracted from Investing.com. The data towards Coronavirus Panic Index, Coronavirus Hype Index, Coronavirus Fake News Index, Coronavirus Sentiment Index, Coronavirus Infodemic Index, Coronavirus Media Coverage Index was provided by RavenPack. The data concerning daily number of new reported COVID-19 cases worldwide and daily number of new reported COVID-19 deaths worldwide was extracted from Our World in Data.

Table 7

Et another fork or should we say proposed hard ford is expected to take place today. This one is as controversial as the previous one when Bitcoin Cash parted ways with Bitcoin on August 1, 2017. Despite all the skepticism & doubts BCH has survived and actually gained respectable acceptance in the Fintech mainstream. Solana’s latest price rally comes in the wake of new Bitcoin all-time highs above $65,000.

The datasets used and/or analyzed during the current study are available from the corresponding author on reasonable request. Data Availability StatementThe data regarding daily changes of Bitcoin price (BTC/USD – Bitcoin US Dollar) and daily change of Chicago Board Options Exchange volatility index was extracted from Investing.com. Wall Street is a street in a lower Manhattan, New York, that houses crucial financial companies, banks and exchanges. The Wall Street stock market is one of the most famous places of trade and includes the NYSE – the world’s largest stock exchange in terms of market capitalization. The significance of Wall Street and its impact is hard to overestimate, as the most influential financial companies from all over the world are gathered there.

This technique presumes a dynamic approach for causality examination because it is applied over several alternative frequencies. Destructive occurrences, such as COVID-19, engender fear among investors, which can modify their investment conduct, risk predilections, and, thus, asset prices (Papakyriakou et al. 2019). Béjaoui et al. reported short- and https://www.beaxy.com/ long-term support for the link between the Bitcoin price, social media metrics, and the intensity of the pandemic. Haroon and Rizvi found that panic induced by coronavirus news positively relates to volatilities in various manufacturing segments’ indices. Ambros et al. noticed that COVID-19 news boosted stock market volatility in European markets.

• Likewise, the findings align with Guégan and Renault , who noticed that investor sentiment Granger causes Bitcoin returns.
• A cryptocurrency is a digital or virtual currency that uses cryptography and is difficult to counterfeit.
• Nevertheless, the NARDL framework cannot be considered if one of the variables is I since the value of the F-test related to the bounds testing cointegration approach is invalid.
• Positive feedback trading or trend chasing implies that investors buy securities when prices increase and sell when prices go down (Long et al. 1990), while negative feedback or contrarian trading implies buying after price decline (Cutler et al. 1990).
• It may have started as a joke based on an internet meme of a shiba inu dog, but this crypto has serious value at the moment.

Apart from Bitcoin, Square observed $42.8B in gross payment volume (the total amount all of their vendors booked in transactions.) The company’s total net revenue without Bitcoin was $1.96B.

Once you have purchased Bitcoin using Coinbase, you can then transfer your Bitcoin to an exchange such as Binance to purchase other cryptocurrencies, including Frax Share. Sign-up to receive the latest news and price data for Frax Share and its competitors with MarketBeat’s CryptoBeat newsletter. Wasiuzzaman S, Rahman HSWA. Performance of gold-backed cryptocurrencies during bitcoin cash stocktwits the COVID-19 crisis. Marobhe MI. Cryptocurrency as a safe haven for investment portfolios amid COVID-19 panic cases of Bitcoin, Ethereum and Litecoin. Le TH, Do HX, Nguyen DK, Sensoy A. Covid-19 pandemic and tail-dependency networks of financial assets. Khelifa SB, Guesmi K, Urom C. Exploring the relationship between cryptocurrencies and hedge funds during COVID-19 crisis.

Furthermore, Fareed et al. , among other studies, reported a nonlinear relationship between COVID-19 and Bitcoin. Hou et al. also found a short-term negative effect of COVID-19 on Bitcoin prices but a long-term beneficial effect due to its features, such as digital payments, unbanked assets, and safer virus propagation. Marobhe proved that Bitcoin, Ethereum, and Litecoin all experienced sizable negative return shocks during the first wave of COVID-19; however, they bounced back in April 2020 and remained resilient to subsequent COVID-19 panic shocks.