Crypto knocked by reporting
New analysis has found media reporting on cryptocurrencies could explain their volatility.
A UK scientist has analysed media coverage of cryptocurrencies to look for links with their value.
She looked at 4,218 media articles from more than 60 countries between 2018 and 2020, identifying 18 key topics in the coverage.
These were framed around crypto-related crime, financial speculation and investment, financial governance and regulation, political economy, cryptocurrency actors and communities, and specific crypto projects and their respective markets.
The identified cryptocurrency macro discourses appear to have had a ‘social signal’ effect on movements in the crypto financial markets, including potential effects of crypto price volatility.
Her analysis showed that stories related to crypto crime and regulation were followed by decreases in the value of Bitcoin – sometimes within 24 hours.
The reporting of these issues in the media may have had a ‘social signal’ effect on movements in crypto markets, including effects of crypto price volatility, she concludes