Does News Affect Bitcoin Rates? Use Logstash & Free Kusto to Analyze Bitcoin Rates and News Reports
Introduction
Cryptocurrency has become increasingly popular in recent years and is now seen as an attractive investment option for many. As an investor, it is important to understand the factors that affect the price of Bitcoin, the most popular cryptocurrency. One potential factor that affects Bitcoin prices is the news. In this article, we will explore how to use Logstash and Azure Data Explorer to analyze Bitcoin news and its effect on the prices.
The Data
The data used in this analysis was gathered from two sources: news articles and Bitcoin prices. The news articles were gathered from NewsAPI, an API that provides access to real-time and historical news data from over 50,000 sources. The Bitcoin prices were gathered from Coinbase, one of the most popular cryptocurrency exchanges.
Data Analysis with Logstash & Azure Data Explorer
Logstash is an open source data processing pipeline that can be used to ingest and transform data. Logstash can be used to ingest data from a variety of sources, including news APIs. In this case, Logstash was used to ingest the news data from NewsAPI and store it in Azure Data Explorer (ADX).
The data was then analyzed using ADX, a highly scalable data exploration and analytics service. ADX supports a variety of data types and offers powerful query language capabilities. Using ADX, we can easily analyze the data and create visualizations to understand the effects of news on Bitcoin prices.
Results
Using Logstash and ADX, we were able to analyze the Bitcoin news and its effect on the prices. The results showed that news does indeed have an effect on Bitcoin prices, but the effect is short-lived. This suggests that news has a short-term effect on Bitcoin prices, but the long-term trend is determined by other factors.
Conclusion
This article demonstrated how Logstash and Azure Data Explorer can be used to analyze Bitcoin news and its effect on the prices. The results showed that news does indeed have an effect on Bitcoin prices, but the effect is short-lived. This suggests that news has a short-term effect on Bitcoin prices, but the long-term trend is determined by other factors. As a Cloud Architect, it is important to understand the potential sources of news and their effects on Bitcoin prices, so that you can make informed decisions when investing in cryptocurrency.
References:
Does news affect Bitcoin rates? Use Logstash & Free Kusto to analyze Bitcoin rates and news reports
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1. Bitcoin Price
2. Cryptocurrency news
3. Bitcoin Rates
