The Interplay Between Investor Activity on Virtual Investment Community and the Trading Dynamics: Evidence From the Bitcoin Market

Peng Xie ()
Additional contact information
Peng Xie: California State University, East Bay

Information Systems Frontiers, 2022, vol. 24, issue 4, No 13, 1287-1303

Abstract: Abstract Virtual investment community has become an important information source for investors. This study contributes to the related literature by investigating the endogenous interplay between investor activity on the virtual investment community and the market trading dynamics using a vector autoregressive framework to analyze an hourly dataset collected from the Bitcoin market. The main results suggest that the sentiment and the posting frequency of virtual investment community messages are largely driven by the past market outcomes, but they provide limited value-relevant information for future price prediction. It is also demonstrated that when investors express conflicting opinions, or when their discussions exhibit a lack of diversity, their incentive to trade decreases, resulting in low trading volume. Theoretical contributions and practical implications are discussed.

Keywords: Social media analytics; Financial technology; Opinion mining; Topic modeling; Bitcoin (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s10796-021-10130-y Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:infosf:v:24:y:2022:i:4:d:10.1007_s10796-021-10130-y

Ordering information: This journal article can be ordered from
http://www.springer.com/journal/10796

DOI: 10.1007/s10796-021-10130-y

Access Statistics for this article

Information Systems Frontiers is currently edited by Ram Ramesh and Raghav Rao

More articles in Information Systems Frontiers from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().