The authors of the work concluded that positive emoticons can be a harbinger of the growth of crypto assets.

To find out the connection between social media posts using emojis associated with positive sentiment towards cryptocurrency and increased trading returns, the researchers turned to X.

The authors of the work used artificial intelligence to analyze the sentiment of market participants based on emoticons and used the results to purchase cryptocurrency. According to the study, the scheme produced positive results.

“The strong predictive link between high positive sentiment levels and subsequent BTC price increases suggests that optimistic social media discourse, encapsulated by the most positively perceived emojis, acts as a barometer for market sentiment. It may more broadly reflect investor optimism, potentially driving buying behavior and influencing market trends.”

Emoji Sentiments reactions researchers

Researchers regard emoji as a barometer of sentiment. Positive emojis can reflect investor optimism. Posting such symbols can maintain buyer interest in crypto and influence market trends.

Although the study results are promising, it is essential to acknowledge certain limitations. The trading strategy developed by the researchers should have taken into account trading fees, which could have affected the overall profitability of the approach. Additionally, the study focused primarily on Bitcoin (BTC) trading and may not be directly applicable to other cryptocurrencies.

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