Corroboration of Twitter Sentiment Analysis and Event Analysis of Indian Budget 2022 on Bitcoin Market

This study aims to understand the corroboration of the results of Sentimental analysis with Event Analysis on the Indian Budget 2022 announcement on cryptocurrency. Sentimental analysis tries to classify the tweets on Bitcoin on the budget day into Positive or Negative and deciphers the overall sentiment of the bitcoin investors on the Budget Day and the subsequent 2 days. This has been made possible by using a supervised machine learning algorithm. Event Analysis identifies whether any abnormal returns are seen on the event day and the subsequent 10 days. This study observes that the range between the positive and negative sentiments is minimal and there is no abnormal returns found post the budget announcement in the event study. It may be concluded that positive sentiments nullified the negative sentiments where the overall sentiments have a mean subjectivity score that is more leaning towards the less-opinionated side, which may be accounted for the lack of abnormality was found on the event day as well as the adjustment period.