Effect of Financial News Headlines on Crypto Prices Using Sentiment Analysis

Crypto prices are not solely based on historical data, dependent on the current state of the market, which can also fluctuate it significantly. A crypto’s price can increase or decrease depending on financial news headlines. In order to understand the effect of a headline of news, sentiment analysis is one of the most popular techniques, whether it is positive or negative. The crypto market is not stable and fluctuates constantly, therefore, it is very challenging to predict crypto prices precisely. We used Vader (Valence Aware Dictionary for Sentiment Reasoning) model and TextBlob model of sentiment analysis combining with Support Vector Regressor (SVR) and Prophet (formally Fbprophet) to analyze that how much does news headline effect on the prediction of crypto price of Bitcoin.