Visceral emotions and Bitcoin trading

Yongkil Ahn and Dongyeon Kim

Finance Research Letters, 2023, vol. 51, issue C

Abstract: Using a new emotion-mining technique, we quantify visceral emotions among Bitcoin investors and investigate whether an empirical connection exists between micro-level visceral emotions and macro-level price dynamics in the cryptocurrency market. We find that cryptocurrency market investors carry visceral emotions. Bitcoin's intraday volatility and trading volume are associated with visceral emotions. This association is more salient for negative emotions. This form of emotional trading can cause a more behavioral group of investors to perform poorly in the cryptocurrency market.

Keywords: Visceral emotions; Bitcoin; Return; Volatility; Trading volume (search for similar items in EconPapers)
JEL-codes: G41 (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:51:y:2023:i:c:s1544612322006341

DOI: 10.1016/j.frl.2022.103458

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