@odor66
Market sentiment plays a significant role in driving price volatility in the cryptocurrency market. Positive news, such as regulatory approvals or major partnerships, can quickly shift sentiment toward optimism, leading to buying pressure and price surges. Conversely, negative news, like security breaches or government crackdowns, often leads to panic selling and sharp price declines. Social media amplifies these effects, as influencers, rumors, and online communities can spread sentiment rapidly. In the volatile crypto market, these emotional reactions contribute to sharp and frequent price fluctuations, making sentiment analysis a key tool for predicting short-term market movements.
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