Exploring the Influence of News Articles on Bitcoin Price with Machine Learning

In recent years, cryptocurrencies have become more and more popular around the world, and they are being accepted and used by more countries. Cryptocurrencies are decentralized, and they form an emerging market that is different from stocks. At present, there is already much work around the stock price prediction using news articles, but there are few papers on the cryptocurrency market. In this paper, we aim to research the effects of news articles on bitcoin prices. We extract features from news articles with both commonly used text feature extraction algorithms (e.g., N-Gram and TF-IDF) and SentiGraph, which is a novel text representation method we propose. SentiGraph takes advantages of sentiment analysis and transforms a news article into a graph. Compared with previous feature extraction methods, our experiment results show that this new approach is superior on the prediction accuracy, which also demonstrates the impacts of news articles on the bitcoin price.