Influence of Communities and Social Media on Cryptocurrency Price Movements
Kuusela, Juho (2025)
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2025053018301
https://urn.fi/URN:NBN:fi:amk-2025053018301
Tiivistelmä
Cryptocurrency prices, as becoming more mainstream, have increasingly been influenced by social and psychological factors rather than just focusing on the technical fundamentals and real-world usage. The objective for this research was to explore how cryptocurrency communities, social media, and psychological drivers such as fear of missing out, or FOMO, contribute to short-term price fluctuations in the cryptocurrency markets.
The research was done by utilizing a qualitative research method, combining semi-structured inter-views and open-ended surveys to collect insights from individuals who were actively involved in trading cryptocurrencies. Ten semi-structured interviews and open-ended surveys were used to collect primary data. The results indicate that crypto communities on social media platform such as X, Telegram, and Discord are central hubs for trading signals and creating hype around crypto projects and coins. Participants stated that social media hype and influencer activity often triggered shifts in their trading decisions. For instance, psychological drivers like herding and FOMO were often found to be a key role in making impulsive trading decisions.
The findings supported by the literature demonstrated, that social media, community influence and psychological factors are influential elements when discussing about price fluctuations in cryptocurrency markets. Even though, these communities and social media usually offer faster access to news and market trends, they also can encourage traders to act impulsively and take more risks. Recognizing and understanding these effects can help cryptocurrency traders to take more thoughtful decisions, calculated risks and understand how emotions and social pressure can shape their trading decisions.
The research was done by utilizing a qualitative research method, combining semi-structured inter-views and open-ended surveys to collect insights from individuals who were actively involved in trading cryptocurrencies. Ten semi-structured interviews and open-ended surveys were used to collect primary data. The results indicate that crypto communities on social media platform such as X, Telegram, and Discord are central hubs for trading signals and creating hype around crypto projects and coins. Participants stated that social media hype and influencer activity often triggered shifts in their trading decisions. For instance, psychological drivers like herding and FOMO were often found to be a key role in making impulsive trading decisions.
The findings supported by the literature demonstrated, that social media, community influence and psychological factors are influential elements when discussing about price fluctuations in cryptocurrency markets. Even though, these communities and social media usually offer faster access to news and market trends, they also can encourage traders to act impulsively and take more risks. Recognizing and understanding these effects can help cryptocurrency traders to take more thoughtful decisions, calculated risks and understand how emotions and social pressure can shape their trading decisions.