Whether and when did bitcoin sentiment matter for investors? Before and during the COVID-19 pandemic

<p dir="ltr">Using a wavelet coherence approach, this study investigates the relationship between Bitcoin return and Bitcoin-specific sentiment from January 1, 2016 to June 30, 2021, covering the COVID-19 pandemic period. The results reveal that before the pandemic, sentiment positiv...

وصف كامل

محفوظ في:
التفاصيل البيبلوغرافية
المؤلف الرئيسي: Ahmet Faruk Aysan (11902115) (author)
مؤلفون آخرون: Erhan Muğaloğlu (10133003) (author), Ali Yavuz Polat (7775045) (author), Hasan Tekin (19457332) (author)
منشور في: 2023
الموضوعات:
الوسوم: إضافة وسم
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author Ahmet Faruk Aysan (11902115)
author2 Erhan Muğaloğlu (10133003)
Ali Yavuz Polat (7775045)
Hasan Tekin (19457332)
author2_role author
author
author
author_facet Ahmet Faruk Aysan (11902115)
Erhan Muğaloğlu (10133003)
Ali Yavuz Polat (7775045)
Hasan Tekin (19457332)
author_role author
dc.creator.none.fl_str_mv Ahmet Faruk Aysan (11902115)
Erhan Muğaloğlu (10133003)
Ali Yavuz Polat (7775045)
Hasan Tekin (19457332)
dc.date.none.fl_str_mv 2023-12-21T06:00:00Z
dc.identifier.none.fl_str_mv 10.1186/s40854-023-00536-9
dc.relation.none.fl_str_mv https://figshare.com/articles/journal_contribution/Whether_and_when_did_bitcoin_sentiment_matter_for_investors_Before_and_during_the_COVID-19_pandemic/26796166
dc.rights.none.fl_str_mv CC BY 4.0
info:eu-repo/semantics/openAccess
dc.subject.none.fl_str_mv Commerce, management, tourism and services
Banking, finance and investment
Economics
Econometrics
Bitcoin
Return
COVID-19
Sentiment
TRMI
dc.title.none.fl_str_mv Whether and when did bitcoin sentiment matter for investors? Before and during the COVID-19 pandemic
dc.type.none.fl_str_mv Text
Journal contribution
info:eu-repo/semantics/publishedVersion
text
contribution to journal
description <p dir="ltr">Using a wavelet coherence approach, this study investigates the relationship between Bitcoin return and Bitcoin-specific sentiment from January 1, 2016 to June 30, 2021, covering the COVID-19 pandemic period. The results reveal that before the pandemic, sentiment positively drove prices, especially for relatively higher frequencies (2–18 weeks). During the pandemic, the relationship was still positive, but interestingly, the lead-lag relationship disappeared. Employing partial wavelet tools, we factor out the number of COVID-19 cases and deaths and the Equity Market Volatility Infectious Disease Tracker index to observe the direct relationship between a change in sentiment and return. Our results robustly reveal that, before the pandemic, sentiment had a positive effect on return. Although positive coherence still existed during the pandemic, the lead-lag relationship disappeared again. Thus, the causal relationship that states that sentiment leads to return can only be integrated into short-term trading strategies (up to six weeks frequency).</p><h2>Other Information</h2><p dir="ltr">Published in: Financial Innovation<br>License: <a href="https://creativecommons.org/licenses/by/4.0" target="_blank">https://creativecommons.org/licenses/by/4.0</a><br>See article on publisher's website: <a href="https://dx.doi.org/10.1186/s40854-023-00536-9" target="_blank">https://dx.doi.org/10.1186/s40854-023-00536-9</a></p>
eu_rights_str_mv openAccess
id Manara2_dd3566a1adf579b9b854d6d99a714066
identifier_str_mv 10.1186/s40854-023-00536-9
network_acronym_str Manara2
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oai_identifier_str oai:figshare.com:article/26796166
publishDate 2023
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spelling Whether and when did bitcoin sentiment matter for investors? Before and during the COVID-19 pandemicAhmet Faruk Aysan (11902115)Erhan Muğaloğlu (10133003)Ali Yavuz Polat (7775045)Hasan Tekin (19457332)Commerce, management, tourism and servicesBanking, finance and investmentEconomicsEconometricsBitcoinReturnCOVID-19SentimentTRMI<p dir="ltr">Using a wavelet coherence approach, this study investigates the relationship between Bitcoin return and Bitcoin-specific sentiment from January 1, 2016 to June 30, 2021, covering the COVID-19 pandemic period. The results reveal that before the pandemic, sentiment positively drove prices, especially for relatively higher frequencies (2–18 weeks). During the pandemic, the relationship was still positive, but interestingly, the lead-lag relationship disappeared. Employing partial wavelet tools, we factor out the number of COVID-19 cases and deaths and the Equity Market Volatility Infectious Disease Tracker index to observe the direct relationship between a change in sentiment and return. Our results robustly reveal that, before the pandemic, sentiment had a positive effect on return. Although positive coherence still existed during the pandemic, the lead-lag relationship disappeared again. Thus, the causal relationship that states that sentiment leads to return can only be integrated into short-term trading strategies (up to six weeks frequency).</p><h2>Other Information</h2><p dir="ltr">Published in: Financial Innovation<br>License: <a href="https://creativecommons.org/licenses/by/4.0" target="_blank">https://creativecommons.org/licenses/by/4.0</a><br>See article on publisher's website: <a href="https://dx.doi.org/10.1186/s40854-023-00536-9" target="_blank">https://dx.doi.org/10.1186/s40854-023-00536-9</a></p>2023-12-21T06:00:00ZTextJournal contributioninfo:eu-repo/semantics/publishedVersiontextcontribution to journal10.1186/s40854-023-00536-9https://figshare.com/articles/journal_contribution/Whether_and_when_did_bitcoin_sentiment_matter_for_investors_Before_and_during_the_COVID-19_pandemic/26796166CC BY 4.0info:eu-repo/semantics/openAccessoai:figshare.com:article/267961662023-12-21T06:00:00Z
spellingShingle Whether and when did bitcoin sentiment matter for investors? Before and during the COVID-19 pandemic
Ahmet Faruk Aysan (11902115)
Commerce, management, tourism and services
Banking, finance and investment
Economics
Econometrics
Bitcoin
Return
COVID-19
Sentiment
TRMI
status_str publishedVersion
title Whether and when did bitcoin sentiment matter for investors? Before and during the COVID-19 pandemic
title_full Whether and when did bitcoin sentiment matter for investors? Before and during the COVID-19 pandemic
title_fullStr Whether and when did bitcoin sentiment matter for investors? Before and during the COVID-19 pandemic
title_full_unstemmed Whether and when did bitcoin sentiment matter for investors? Before and during the COVID-19 pandemic
title_short Whether and when did bitcoin sentiment matter for investors? Before and during the COVID-19 pandemic
title_sort Whether and when did bitcoin sentiment matter for investors? Before and during the COVID-19 pandemic
topic Commerce, management, tourism and services
Banking, finance and investment
Economics
Econometrics
Bitcoin
Return
COVID-19
Sentiment
TRMI