As per Colin Wu, a Chinese reporter, the typical overall return on investments made following signals from cryptocurrency influencers in X dropped by 2.24% after 10 days and by 6.53% after 30 days.
These statistics are referenced by Indiana University, Harvard Business School, and Texas A&M University. The analysis was conducted on a sample of 36,000 tweets from 180 notable cryptocurrency influencers. Over a two-year period until December 2022, the study encompassed recommendations for 1,600 assets.
The profit margins for transactions within the initial and subsequent two days following recommendations stood at 1.83% and 1.57%, correspondingly. Tokens with small capitalization exhibited a 3.86% gain a day later.
To put it differently, tweets from experts lead to short-term price hikes, but the impact turns adverse over the long haul.
The impact is most evident in posts shared by individuals positioning themselves as experts and among influencers boasting the highest follower counts. Experts additionally highlighted that this data might validate regulators’ worries regarding the potential for crypto influencers to mislead investors.
In February, a study revealed that emojis conveying positive sentiments on social media could anticipate upward shifts in the cryptocurrency market. Researchers managed to secure consistent profits by purchasing Bitcoin (BTC) upon detecting positive sentiment through emojis and selling it the following day, outperforming conventional market patterns.
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