Emotional trading in the cryptocurrency market

Yongkil Ahn; Dongyeon Kim

doi:10.1016/j.frl.2020.101912

Emotional trading in the cryptocurrency market

Yongkil Ahn, Dongyeon Kim

Dept. of Business Administration

Research output: Contribution to journal › Article › peer-review

34 Scopus citations

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.

Original language	English
Article number	101912
Journal	Finance Research Letters
Volume	42
DOIs	https://doi.org/10.1016/j.frl.2020.101912
State	Published - Oct 2021

Keywords

Bitcoin
Emotion analytics
Volatility

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10.1016/j.frl.2020.101912

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title = "Emotional trading in the cryptocurrency market",

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.",

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AB - 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.

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KW - Volatility

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Emotional trading in the cryptocurrency market

Abstract

Keywords

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