Social media impacts cryptocurrency prices; signals can predict price movements

With recent price leaps by Bitcoin and other digital currencies captivating the attention of investors, analysts believe the forces driving these vast market movements lie within the spheres of social media – that social media impacts cryptocurrency prices.

Hedge fund managers and other financial leaders have been building computerized programming tools that can read signals from social media to predict price movements in the crypto market.

With crypto assets sweeping through the market news lately, algorithms have become an increasingly lucrative enterprise, assisting traders with market predictions. A growing number of financial managers have been looking to this avenue for expanding profits. This sector has already been explored in the trading market, with programs being utilized to manage price movements across exchange firms.

But with this ever growing new sector, the opportunities seem more plentiful and creative. The larger brands in the industry look ready to invest in more advanced programming software to conduct their trading work.

Despite the benefits of using social media as a grounds for prediction, there are clear risks and challenges yet to be faced with this new business.

“It’s an arms race for money managers,” comments Bin Ren, the CEO of a leading asset management firm.

News reports reveal that such data-driven blockchain programming jobs have skyrocketed over the recent time. According to one such report, they’ve witnessed a staggering 4,086% spike since the dawn of this year.

Fake News – A Prime Challenge

One of the major noticeable challenges with this industry is the susceptibility of fake news within major social media firms. With compromised news sources growing rampantly across social media outlets, these ‘algos’ could very easily be jeopardized by absorbing fake claims elicited on these platforms.