Emotional trading in the cryptocurrency market

Yongkil Ahn and Dongyeon Kim

Finance Research Letters, 2021, vol. 42, issue C

Abstract: We quantify the emotional factors inherited in 2,050,280 posts on Bitcointalk.org and investigate the impact of emotion on Bitcoin price fluctuations. Future Bitcoin returns are not associated with emotional factors, but Bitcoin trading volume and return volatility are significantly predicted by a catalog of emotions. Emotions affect the total return variation process of investors, and thus may influence the financial market by inducing extraordinary price movements.

Keywords: Emotion analytics; Bitcoin; Volatility (search for similar items in EconPapers)
JEL-codes: G41 (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (14)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:42:y:2021:i:c:s1544612320317268

DOI: 10.1016/j.frl.2020.101912

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