Enhancing Cryptocurrency Sentiment Analysis with Multimodal Features
This work addresses the need for better sentiment analysis in cryptocurrency markets by incorporating multimodal features, though it is incremental as it builds on existing text-based methods by adding video data.
This study tackled the problem of analyzing cryptocurrency sentiment by comparing TikTok and Twitter data, finding that video-based sentiment from TikTok influences short-term market trends while text-based sentiment from Twitter aligns with long-term dynamics, with integration improving forecasting accuracy by up to 20%.
As cryptocurrencies gain popularity, the digital asset marketplace becomes increasingly significant. Understanding social media signals offers valuable insights into investor sentiment and market dynamics. Prior research has predominantly focused on text-based platforms such as Twitter. However, video content remains underexplored, despite potentially containing richer emotional and contextual sentiment that is not fully captured by text alone. In this study, we present a multimodal analysis comparing TikTok and Twitter sentiment, using large language models to extract insights from both video and text data. We investigate the dynamic dependencies and spillover effects between social media sentiment and cryptocurrency market indicators. Our results reveal that TikTok's video-based sentiment significantly influences speculative assets and short-term market trends, while Twitter's text-based sentiment aligns more closely with long-term dynamics. Notably, the integration of cross-platform sentiment signals improves forecasting accuracy by up to 20%.