---
title: Bitcoin, Sentiment Analysis and the Efficient Market Hypothesis: A Machine Learning Approach
url: https://www.ml-quant.com/papers/ssrn/4610497/
site: ML-Quant (https://www.ml-quant.com)
updated: 2026-09-26
license: Summaries CC BY 4.0; links go to the original sources
index: https://www.ml-quant.com/llms.txt
identifier: SSRN 4610497
source_url: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4610497
featured: 2023-10-25
citations: 0
topic: Crypto & DeFi
---


# Bitcoin, Sentiment Analysis and the Efficient Market Hypothesis: A Machine Learning Approach

Machine learning models used to predict Bitcoin trends support the Efficient Market Hypothesis and can yield higher returns than traditional strategies.

- Source: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4610497
- Identifier: SSRN 4610497
- Released: 2023-01-28
- First featured: Quant Letter No. 23 (2023-10-25): https://www.ml-quant.com/issues/2023-10-25/
- Citations (Semantic Scholar): 0
- Published in: not yet
- Topic: Crypto & DeFi

## Related

- [Transformer-based approach for Ethereum Price Prediction Using Crosscurrency correlation and Sentiment Analysis](https://www.ml-quant.com/papers/arxiv/2401.08077/): The research uses a transformer-based neural network to forecast Ethereum prices, indicating a strong correlation with other cryptocurrencies and sentiments, and suggests a theory on sentiment-driven illusion of causality in cryptocurrency price movements.
- [From Whales to Waves: The Role of Social Media Sentiment in Shaping Cryptocurrency Markets](https://www.ml-quant.com/papers/ssrn/4706410/): The paper explores the correlation between cryptocurrency market trends and investor sentiment, revealing a significant connection, especially influenced by large-scale investors.
- [Emoji driven crypto assets market reactions](https://www.ml-quant.com/papers/ssrn/4722627/): Research using GPT4 and a BERT model shows that Twitter emoji sentiment can predict cryptocurrency market trends and help avoid major downturns.
- [Causality between Sentiment and Cryptocurrency Prices](https://www.ml-quant.com/papers/arxiv/2306.05803/): A Narrative Study: A study has been conducted to examine the correlation between narratives on Twitter and the value of cryptocurrency. The study used topic modelling and sentiment analysis to identify 4-5 cryptocurrency-related narratives and their impact on crypto prices.
- [Bitcoin Sentiment Index and Asset Classes Connectedness: An International Evidence](https://www.ml-quant.com/papers/ssrn/4817777/): The study investigates the influence of Bitcoin investors' sentiments on global stock market volatility and the relationship between Bitcoin and other financial assets.
- [Different Aspects of Heterogeneity in the Crypto-Asset Market: A Systematic Review of Empirical Studies](https://www.ml-quant.com/papers/ssrn/4947445/): A review of 200+ studies on the cryptoasset market highlights variations in asset-wise, time-varying, and time-frequency domains, emphasizing market connectedness and sentiment analysis during COVID-19.
