ADELANTE
Institutional Repository

In recent years, news sentiment has been more influential over financial markets due to the digitization of news articles and the development of computational intelligence applications. News sentiment has frequently been utilized to measure investor sentiment and illuminate society's optimism for the market's future. Recent studies have shown that the vast amount of information available on the internet, including social media debates, Wikipedia usage patterns, and news stories from the major media, can visually impact investors' perceptions of the financial markets. The effects of news sentiments on the cryptocurrency market, notably Bitcoin, were retrieved, extracted, and studied in this paper. We analyze more than 500 news articles and document the presence of significant feedback between news sentiments and Bitcoin's returns. Using regression analysis, we achieved a correlation coefficient of 86.42% between news sentiments and bitcoin price. This observation confirms that news sentiment significantly drives Bitcoin price movements. As a result, increased activity in the cryptocurrency market tends to trigger automatic reactions, leading to more news coverage and publications. Furthermore, this study's findings can be used to develop and improve trading strategies incorporating news sentiment analysis as a vital tool for predicting Bitcoin price movements.