Cryptocurrency and the Impact of Twitter


Twitter is one of the world’s best known social networks. Last year, the site generated revenue of over $5 billion, and as of April 2022 it has been purchased for $44bn by prolific cryptocurrency influencer Elon Musk.

One of the most talked about topics on Twitter is cryptocurrency, with many users taking to the social network to discuss their crypto ventures and views. As a result, cryptocurrencies regularly trend on Twitter, with investors often heading straight to the site whenever they have a question or comment to make about digital currencies. But have you ever wondered how much of an impact these conversations really have?

Does Twitter really hold all the power when it comes to determining cryptocurrency market prices, or is it those same fluctuating prices that are getting people talking, causing cryptocurrency topics to continue to trend? Our research team wanted to find out, so we analysed conversations on Twitter from January 2021 to January 2022, to see how influential tweets could really be. Here’s what we found.


Analysis completed by our research team found that sentiment towards cryptocurrencies on social media was intrinsically linked to how they were valued in real terms at a given time.

The period which came under scrutiny in this research showed a number of significant leaps and drops in the valuation of currencies, with opinion on social media changing quite dramatically both before and after these fluctuations.

Announcements such as the one made by Elon Musk regarding Tesla’s acceptance of payment in the cryptocurrency Bitcoin have often made digital currencies the talk of Twitter, and user sentiment has tended to directly reflect price fluctuations throughout the period of research.

Our research found:

  • The most disliked cryptocurrency was Ethereum (29% negative)
  • Dogecoin was the most popular currency (94% positive)
  • Cryptocurrency price fluctuations are being led by retail investors
  • Pivotal moments in digital currency evolution tend to result in a rise in both positive and negative tweets

Read on for our full analysis of the link between the positivity of tweets regarding digital currencies and their valuation from January 2021 to January 2022.

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2022: Is the crypto winter coming?

In May, the crypto market plummeted. Crypto hasn’t proved to be a safe haven in times of stock market tumult, central bank tightening, war, an energy and food crisis, global supply chain chaos, or during a pandemic.

Goldman Sachs calculated that the mass sell-off in 2022 has knocked $1 trillion off the combined market capitalization of the world’s cryptocurrencies.

Prices of BTC plummeted by 37%, ETH was down by almost 50% and DOGE was down by half its previous high (50%).

This downturn was triggered by a consumer price report, which noted a further increase in inflation. As a result, crypto investors went on the defensive, selling their stocks at alarming rates.

We decided to see if this downturn was reflected on Twitter. Using the same methodology, we analysed tweets from between January and the end of May 2022 to see how users were reacting to this crash, and if their frustrations were being conveyed on the social media platform.

The negative sentiment tweets for BTC included Bitcoin and phrases such as ‘Hate…’,’…is a scam’, ‘disappointed with…/ disappointed’, ‘dip in…’, ‘bad…’, ‘lost money with/loss on…’ There were a large number of negative sentiment tweets however, despite the plummet in May, there were only 6% more than in the same time period in 2021. That said, almost a quarter (19%) of the negative tweets were in May – which is when the crash happened.

ADA also had a large number of negative tweets, in fact, there were only 39% fewer tweets within the space of five months (Jan – May) than there were throughout the entirety of 2021. This isn’t surprising considering that ADA had one of the biggest drops of all the major cryptocurrencies – it fell by 61%, only behind Solana which dropped by 70%.

ETH continued to get a lot of tweets with negative sentiment. There were 24% more negative tweets in this period in 2022 compared to January to May in 2021.

Similarly to 2021, DOGE continued to get the fewest negative tweets. In fact, it had considerably less than in 2021 despite the price dropping so drastically. This isn’t totally surprising as our previous research showed that DOGE has the most loyal investors.

So, is the crypto winter coming? Looking at our research, no. Whilst in some instances negative tweets have increased – specifically ADA and ETH – currencies including DOGE and BTC are seeing people very much ‘hodl-ing’.

However, looking at the prices of cryptocurrency, we are seeing a bit of a cold snap. As of 15 June, the most popular crypto Bitcoin is down 54% based on the past six months, as are the majority of others. Global events are currently having an impact across most industries and – despite having its biggest year ever in 2021 – it seems that this has now caught up with the cryptocurrency market.