The impacts of social media on bitcoin performance

As the world's first completely decentralized digital payment system, the emergence of Bitcoin represents a revolutionary phenomenon in financial markets. This study examines the dynamic relationships between social media and bitcoin performance. We consider the distinct effects of different social media platforms and different user groups subdivided by posting volume. The results suggest that more bullish forum posts have a positive effect on bitcoin returns, and the effect is stronger when we only include the posts by users who are less likely to contribute. In addition, messages on Internet forum have stronger impacts on future bitcoin market measures at a daily frequency, but microblogs' effects are more significant at an hourly frequency.