Whose Sentiment towards the Market influences the Market Sentiment?

The datastory of ADADELTA-Q’s project in the context of the EPFL Applied Data Analysis course (2021 edition).


“Bitcoin Price Slips on Elon Musk’s Breakup Meme Tweet”. This was the heading of an article of The Wall Street Journal published the 4th of June 2021. On that day, Elon Musk tweeted “#Bitcoin ₿ 💔”, and the cryptocurrency market went crazy. This is all it took to Elon Musk to cause a drop of about 4% in the value of Bitcoin and other cryptocurrencies, one word and two emojis. Now, cryptocurrencies have been proven to be much more volatile than financial markets, which could explain its susceptibility to influential peoples’ statements. But this got us thinking.. Can this phenomenon also happen in the financial market? Are there individuals that can influence the behaviour of the market?

Market Sentiment, as described in this article, “refers to the overall attitudes of investors towards a financial market”. In this project we use the Quotebank dataset to study whether the Market Sentiment can be affected, in the sort-term, by the Sentiment expressed in financial quotations published in news articles.

If this introduction triggered your curiosity, we are very happy to guide you through our journey towards finding an answer to our main research question. Otherwise, no hard feelings 😉.

Here you can find the general pipeline we have developed for this project. If certain things are unclear, no worries! In about 5 minutes we will have explained every single step and this picture will become trivial to you!

General Overview of Data Pipeline