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All topics are not created equal: Sentiment and hype of business media topics and the bitcoin market

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  • Biktimirov, Ernest N.
  • Biktimirova, Liana E.

Abstract

Using topic modeling analysis, we identify six bitcoin-related topics - Investing, Bitcoin Market, Regulation, Private Equity, Cybersecurity, and Macroeconomy - discussed in the Wall Street Journal and document differences in their sentiment (polarity) and hype (intensity of coverage) over the 2013–2021 period. Importantly, we find the topics differ not only in strength (significant vs. insignificant) but also in direction (negative vs. positive) and shape (linear vs. non-linear) of their relations to bitcoin returns, trading volume, and volatility.

Suggested Citation

  • Biktimirov, Ernest N. & Biktimirova, Liana E., 2023. "All topics are not created equal: Sentiment and hype of business media topics and the bitcoin market," Economics Letters, Elsevier, vol. 231(C).
    • Handle: RePEc:eee:ecolet:v:231:y:2023:i:c:s0165176523003361
    DOI: 10.1016/j.econlet.2023.111311
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    References listed on IDEAS

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    1. Bruno Biais & Christophe Bisière & Matthieu Bouvard & Catherine Casamatta & Albert J. Menkveld, 2023. "Equilibrium Bitcoin Pricing," Journal of Finance, American Finance Association, vol. 78(2), pages 967-1014, April.
    2. Biktimirov, Ernest N. & Sokolyk, Tatyana & Ayanso, Anteneh, 2021. "Sentiment and hype of business media topics and stock market returns during the COVID-19 pandemic," Journal of Behavioral and Experimental Finance, Elsevier, vol. 31(C).
    3. Leland Bybee & Bryan T. Kelly & Asaf Manela & Dacheng Xiu, 2021. "Business News and Business Cycles," NBER Working Papers 29344, National Bureau of Economic Research, Inc.
    4. Yukun Liu & Aleh Tsyvinski & Xi Wu, 2022. "Common Risk Factors in Cryptocurrency," Journal of Finance, American Finance Association, vol. 77(2), pages 1133-1177, April.
    5. Yukun Liu & Aleh Tsyvinski, 2021. "Risks and Returns of Cryptocurrency," The Review of Financial Studies, Society for Financial Studies, vol. 34(6), pages 2689-2727.
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    Cited by:

    1. Biktimirov, Ernest N. & Sokolyk, Tatyana & Ayanso, Anteneh, 2024. "What is behind housing sentiment?," Finance Research Letters, Elsevier, vol. 60(C).

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    More about this item

    Keywords

    Bitcoin; Media hype; Media sentiment; Topic modeling; Text analysis;
    All these keywords.

    JEL classification:

    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • G40 - Financial Economics - - Behavioral Finance - - - General
    • G41 - Financial Economics - - Behavioral Finance - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making in Financial Markets

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