Wavelet Analysis of Bitcoin Price and Twitter-Based Economic Uncertainty Index
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Keywords

Wavelet
Bitcoin
Twitter
Time series

DOI

10.26689/pbes.v5i5.4414

Abstract

In this paper, we analyze the time-series graphs of Bitcoin price and Twitter-based economic uncertainty index over the past two years and use a wavelet coherence graph to determine their relationship. We found a causal relationship between Bitcoin (BTC) and Twitter-based economic uncertainty (TEU) index in different frequency bands, which would help predict Bitcoin price movements in the future. Our study provides reference to academics and investors.

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