FoMO in the Bitcoin market: Revisiting and factors

Jying-Nan Wang, Hung-Chun Liu, Yen-Hsien Lee and Yuan-Teng Hsu

The Quarterly Review of Economics and Finance, 2023, vol. 89, issue C, 244-253

Abstract: We revisit the “fear of missing out” (FoMO) effect of Bitcoin by observing asymmetric volatility dynamics and further investigate its driving factors. Using a longer sample period covering the COVID-19 pandemic, our results show evidence of positive asymmetric volatility behavior in the Bitcoin market, confirming the presence of the FoMO effect. This effect also exists in some other major cryptocurrencies. Further analysis indicates that the happiness index, the ratio of short-term to long-term Bitcoin trading volume, and the geopolitical risk index contribute positively to the FoMO, while the volatility index and the Twitter-based uncertainty index exert an opposite effect.

Keywords: Bitcoin; FoMO; Cryptocurrency; GJR-GARCH; Rolling estimation (search for similar items in EconPapers)
JEL-codes: C14 C22 G14 G15 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:quaeco:v:89:y:2023:i:c:p:244-253

DOI: 10.1016/j.qref.2023.04.007

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