<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>In the burgeoning realm of cryptocurrency, social media platforms like Twitter have become pivotal in influencing market trends and investor sentiments. In our study, we leverage GPT-4 and a fine-tuned transformer-based BERT model for a multimodal sentiment analysis, focusing on the impact of emoji sentiment on cryptocurrency markets. By translating emojis into quantifiable sentiment data, we correlate these insights with key market indicators such as BTC Price and the VCRIX index. Our architecture’s analysis of emoji sentiment demonstrated a distinct advantage over FinBERT’s pure text sentiment analysis in such predicting power. This approach may be fed into the development of trading strategies aimed at utilizing social media elements to identify and forecast market trends. Crucially, our findings suggest that strategies based on emoji sentiment can facilitate the avoidance of significant market downturns and contribute to the stabilization of returns. This research underscores the practical benefits of integrating advanced AI-driven analyzes into financial strategies, offering a nuanced perspective on the interaction between digital communication and market dynamics in an academic context.</p>
</abstract>

In the burgeoning realm of cryptocurrency, social media platforms like Twitter have become pivotal in influencing market trends and investor sentiments. In our study, we leverage GPT-4 and a fine-tuned transformer-based BERT model for a multimodal sentiment analysis, focusing on the impact of emoji sentiment on cryptocurrency markets. By translating emojis into quantifiable sentiment data, we correlate these insights with key market indicators such as BTC Price and the VCRIX index. Our architecture’s analysis of emoji sentiment demonstrated a distinct advantage over FinBERT’s pure text sentiment analysis in such predicting power. This approach may be fed into the development of trading strategies aimed at utilizing social media elements to identify and forecast market trends. Crucially, our findings suggest that strategies based on emoji sentiment can facilitate the avoidance of significant market downturns and contribute to the stabilization of returns. This research underscores the practical benefits of integrating advanced AI-driven analyzes into financial strategies, offering a nuanced perspective on the interaction between digital communication and market dynamics in an academic context.

Emoji driven crypto assets market reactions

Department of Information Management and Finance, College of Management

Management & Marketing

This work is licensed under the Creative Commons Attribution 4.0 International License.

{"article-title":"Emoji driven crypto assets market reactions"}

In the burgeoning realm of cryptocurrency, social media platforms like Twitter have become pivotal in influencing market trends and investor sentiments. In our...

Emoji driven crypto assets market reactions

Online veröffentlicht: 13. Juli 2024

Seitenbereich: 158 - 178

DOI: https://doi.org/10.2478/mmcks-2024-0008

Schlüsselwörter
emoji, LLM, VCRIX, crypto, bitcoin

© 2024 Xiaorui Zuo et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Emoji driven crypto assets market reactions

Online veröffentlicht: 13. Juli 2024

Seitenbereich: 158 - 178

DOI: https://doi.org/10.2478/mmcks-2024-0008

Schlüsselwörteremoji, LLM, VCRIX, crypto, bitcoin

© 2024 Xiaorui Zuo et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Schlüsselwörter
emoji, LLM, VCRIX, crypto, bitcoin