Crypto asset investors’ friends may often wonder what factors affect the daily price of crypto assets? Especially after seeing the fact that the price of crypto assets can drop or skyrocket because of the tweets of crypto influencers on Twitter. This can also be used by followers investor cryptocurrency assets to see the state of the market.
You can check the real example for yourself recently. The price of Bitcoin plummeted after Elon Musk tweeted that he was no longer in love with the world’s top crypto asset.
The Tesla CEO posted a meme about a couple splitting up because the woman found ‘someone else’. Then the guy quoted the lyrics of the band Linkin Park, and Elon Musk added the hashtag #Bitcoin and a broken heart emoji. Following the tweet, Bitcoin was seen dropping 4.3% to $36,925.74 at 4:03 p.m. ET last Friday. Not only Musk’s words, but the price of crypto assets can also plummet or skyrocket because of the words of other crypto influencers.
Seeing this, the question inevitably arises, to what extent have the various voices and tweets for and against Bitcoin, altcoins, and stable coins affecting the price? Do prices change following the tweets of crypto influencers? or do influencers only tweet after a price change?
When we talk about the impact that crypto influencers can potentially have on the price of crypto assets, the main focus needs to shift. We need to look at the evaluation of public sentiment circulating on social media platforms.
Crypto Influencers: Turning Opinion into a Profession
There are various crypto influencers on Twitter, from blockchain experts to Bitcoin devotees to professional traders.
Every day, they share their knowledge and opinions on social media platforms. Taking a stand is very important for influencers as it helps define their audience group and ultimately sell their service or product.
But what is the actual impact that Twitter influencers have on the price of crypto assets? Marketing and public relations services company BDCenter Digital conducted extensive research on the matter, from 2018 to June 2020. Researchers analyzed more than 1 million tweets from over a hundred crypto influencers selected through a specific set of criteria.
Each account understudy must have at least 10,000 followers and not belong to a specific crypto or blockchain project. In addition, they must post at least one to two tweets a day, act informatively, and have an active following.
The researcher chose an account with an engagement rate (audience engagement) of more than 500% for this study. While “whale class accounts” show significantly less engagement, it is accounts with 50,000 to 100,000 followers that show the highest engagement.
