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Effect of twitter investor engagement on cryptocurrencies during the COVID-19 pandemic

Author

Listed:
  • Bouteska, Ahmed
  • Hajek, Petr
  • Abedin, Mohammad Zoynul
  • Dong, Yizhe

Abstract

This study aims to examine whether the prices and returns of two cryptocurrencies, Dogecoin and Ethereum, are affected by Twitter engagement following the COVID-19 pandemic. We use the autoregressive integrated moving average with explanatory variables model to integrate the effects of investor attention and engagement on Dogecoin and Ethereum returns using data from December 31, 2020, to May 12, 2021. The results provide evidence supporting the hypothesis of a strong effect of Twitter investor engagement on Dogecoin returns; however, no potential impact is identified for Ethereum. These findings add to the growing evidence regarding the effect of social media on the cryptocurrency market and have useful implications for investors and corporate investment managers concerning investment decisions and trading strategies.

Suggested Citation

  • Bouteska, Ahmed & Hajek, Petr & Abedin, Mohammad Zoynul & Dong, Yizhe, 2023. "Effect of twitter investor engagement on cryptocurrencies during the COVID-19 pandemic," Research in International Business and Finance, Elsevier, vol. 64(C).
    • Handle: RePEc:eee:riibaf:v:64:y:2023:i:c:s0275531922002367
    DOI: 10.1016/j.ribaf.2022.101850
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    References listed on IDEAS

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    Cited by:

    1. Kim, Bumjoon & Koo, Minjae, 2024. "Managerial ability and firm’s tweeting activity," Research in International Business and Finance, Elsevier, vol. 69(C).
    2. Lin, Xudong & Meng, Yiqun & Zhu, Hao, 2023. "How connected is the crypto market risk to investor sentiment?," Finance Research Letters, Elsevier, vol. 56(C).
    3. Li, Scott & Ma, Judy, 2024. "The impact of sentiment and engagement of Twitter posts on cryptocurrency price movement," Finance Research Letters, Elsevier, vol. 65(C).

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    More about this item

    Keywords

    Twitter; Investor engagement; Dogecoin; Ethereum; ARIMAX; COVID-19;
    All these keywords.

    JEL classification:

    • G19 - Financial Economics - - General Financial Markets - - - Other
    • 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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