Media and Cryptocurrency: A Positive Affair

In the past decade, a lot has happened in the cryptocurrency world. There is a direct relation between the popularity of cryptos, their price and the number of articles being written on a daily basis. A recent study by CLOVR compares all the articles written between 2013, when Bitcoin first crossed the $1k per coin threshold, up to 2018 about cryptocurrencies such as Bitcoin, in order to examine how positive or negative these are and how this changes depending on the price of Bitcoin. This is done through surveying 48 national and international media outlets for articles covering cryptos from January1st, 2013 to July 31st, 2018. Keep reading to learn all about it.

Positive Sentiment

The majority of the articles written through the entire period mentioned in the study, have a positive sentiment to them. Obviously, there are several articles with a negative sentiment to them, but the percentage is pretty low. As explained in the project, 96% of the financial and economic articles written have a positive sentiment.

On the other hand, conservative publishers disdain cryptocurrencies since 57.7% of the articles written have a negative sentiment.  However, all other news outlet types have a staggering positive percentage. All the way from centrist publishers with 79.5% positive articles to the liberal ones with an 88.8%.

Total Articles on Crypto

An enormous number of articles have been written about cryptocurrencies since 2013. There was a time, in the wake of Bitcoin’s price drop, where the media coverage of cryptocurrency peaked with 400 articles being written on a weekly basis. This shows that even when the price of Bitcoin started to decline the majority of the articles being written at the time had a positive sentiment to them.

However, a negative sentiment started to appear during the middle of 2017 when Bitcoin started to approach its all-time peak price of $19,783.21 per coin and also, during 2018 when the price dropped and in less than a month, Bitcoin had lost over half its value and over $100 billion in market capitalization. In addition, the average sentiment of USA today, Reuters and Gizmodo articled dropped quite a lot possibly due to the fact that they were overly positive in the beginning.

As can be seen from the figure below, Forbes had only 13 negative articles on cryptocurrency from May 2013 to July 2018. The remaining 972 articles written had all a positive sentiment to them. This is quite interesting as it shows that despite the fact that cryptocurrencies have gone through a lot of criticism, media still has a lot of positive things to write about them.

CNBC had similar results with only 16 negative articles and 969 positive ones. The Wall Street Journal and the Business Insider had more or less the same percentage of positive articles. On the other hand, Reuters and International Business Times had the most negative sentiment articles probably, as already explained, because of the fact that they were too positive in the beginning.

Moreover, CNET and Time outlets had absolutely zero negative articles written about cryptocurrencies between 2013 and 2018. This shows that even with such a small number of articles written compared to other outlets, a little over 300 combined, there was nothing negative to be mentioned.

Lastly, Breitbart News and Raw tory are the only two outlets that had more negative than positive articles published even if the amount of articles written was pretty small; 75 negative ones and only 17 positive ones. This is the exception of the rule as all other outlets had way more positive ones than negative ones. In total, however, both outlets had only 92 articles published which is a negligible amount of articles to carry a strong weight to this study.

Through all this fuss around cryptocurrencies it is quite normal for people to feel uncertain about adding cryptos in their everyday lives. However, as this study showed, there is a positive affair between the mainstream media and cryptocurrency even if there is a negative effect on publicity and popularity when their price drops. Familiarizing ourselves with cryptos and blockchain, the technology behind them, can add to our understanding and thus, make it easier for us to benefit from what this new form of money has to offer.