Exploring the Role of AI-Based Sentiment Detection in Forecasting Crypto currency Market Swings and Its Spillover Effects on Consumer Confidence

Abstract

In this analysis, with the aid of AI sentiment detectors, it is investigated how it predict market changes in crypto currency and its effect on consumer trust level. Given the digital assets’ high market volatility, the capacity of AI models to analyze big data (through processing of investor sentiment) through natural language processing and machine learning algorithms allows it to analyses the financial reports, news and social media of the target or other competitor digital assets. The insights are useful in predicting market trend and in optimizing and managing trading strategies. Crypto currency price changes impact financial stability of earthly markets because changes of crypto currency price will directly affect consumers' willingness to spend and their investment risk strategy. While the increasing chance capabilities of AI technology will offer crypto market evaluation and trading automation, fraud prevention, in addition, create new risks. The research talks about how Artificial intelligence helps in making market forecast and it describes how to resolve the ethical challenges and data precision problems so that financial sector can be made transparent.