Visceral emotions and Bitcoin trading

Yongkil Ahn; Dongyeon Kim

doi:10.1016/j.frl.2022.103458

Visceral emotions and Bitcoin trading

Yongkil Ahn, Dongyeon Kim

Dept. of Business Administration

The Catholic University of Korea

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

4 Scopus citations

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.

Original language	English
Article number	103458
Journal	Finance Research Letters
Volume	51
DOIs	https://doi.org/10.1016/j.frl.2022.103458
State	Published - Jan 2023

Keywords

Bitcoin
Return
Trading volume
Visceral emotions
Volatility

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10.1016/j.frl.2022.103458

Cite this

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title = "Visceral emotions and Bitcoin trading",

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.",

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author = "Yongkil Ahn and Dongyeon Kim",

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AB - 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.

KW - Bitcoin

KW - Return

KW - Trading volume

KW - Visceral emotions

KW - Volatility

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JF - Finance Research Letters

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Visceral emotions and Bitcoin trading

Abstract

Keywords

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