The relevance of media sentiment for small and large scale bitcoin investors

Joscha Beckmann, Teo Geldner and Jan Wüstenfeld

Journal of International Financial Markets, Institutions and Money, 2024, vol. 92, issue C

Abstract: We provide a novel perspective on the bitcoin market, investigating determinants of investor positions and their response to public information proxied by media sentiment indicators. We distinguish between investors by size and observe their respective behaviour concerning incoming information. We find that price dynamics and media sentiment lead to different decisions depending on the bitcoin portfolio size. Retail investors react strongly to incoming public information and media narratives, with their decisions strongly influenced by sentiment and media attention. Contrary to this, the response of large-scale investors to such information is much weaker because they arguably have different, non-public information and divergent investment objectives.

Keywords: Bitcoin; Sentiment; Media attention; Investor behaviour; Entities (search for similar items in EconPapers)
JEL-codes: E41 G11 G41 (search for similar items in EconPapers)
Date: 2024
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:intfin:v:92:y:2024:i:c:s1042443124000295

DOI: 10.1016/j.intfin.2024.101963

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