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The relevance of media sentiment for small and large scale bitcoin investors

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  • Beckmann, Joscha
  • Geldner, Teo
  • Wüstenfeld, Jan

Abstract

We provide a novel perspective on the bitcoin market, investigating determinants of investor positions and their response to public information proxied by media sentiment indicators. We distinguish between investors by size and observe their respective behaviour concerning incoming information. We find that price dynamics and media sentiment lead to different decisions depending on the bitcoin portfolio size. Retail investors react strongly to incoming public information and media narratives, with their decisions strongly influenced by sentiment and media attention. Contrary to this, the response of large-scale investors to such information is much weaker because they arguably have different, non-public information and divergent investment objectives.

Suggested Citation

  • Beckmann, Joscha & Geldner, Teo & Wüstenfeld, Jan, 2024. "The relevance of media sentiment for small and large scale bitcoin investors," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 92(C).
    • Handle: RePEc:eee:intfin:v:92:y:2024:i:c:s1042443124000295
    DOI: 10.1016/j.intfin.2024.101963
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    2. Radu Cezara-Georgiana & Deak Elena Roxana, 2024. "Consumer Behavior in the World of Cryptocurrencies," Proceedings of the International Conference on Business Excellence, Sciendo, vol. 18(1), pages 303-310.

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    More about this item

    Keywords

    Bitcoin; Sentiment; Media attention; Investor behaviour; Entities;
    All these keywords.

    JEL classification:

    • E41 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Demand for Money
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • 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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