The Credibility Cryptocurrency Valuation: Statistical Learning Analysis for Influencer Tweets

TL;DR

This paper analyzes how Elon Musk's tweets influence cryptocurrency markets, using statistical methods and event studies to understand the impact of social media on digital asset valuation.

Contribution

It introduces a statistical learning approach to quantify the influence of influencer tweets on cryptocurrency valuation, focusing on Elon Musk's tweets and their market effects.

Findings

Elon Musk's tweets significantly impact cryptocurrency prices.

Event study reveals notable market reactions to specific tweets.

Statistical analysis quantifies the influence of social media on crypto valuation.

Abstract

Cryptocurrency has attracted significant attention. Considering the number of individuals investing in bitcoin, their motivations are comparatively less clear than traditional investment decisions. As of December 2020, the market has continuously increased in cryptocurrency. Especially, the spike of joke Dogecoin shows the weirdness of the modern meme economy with the support of Elon Musk, whom himself appointed as "Dogefather". In this paper, we analysis the impact of tweets by Elon musk and present some statistical analyze with event study.