R. Karaa
Do investors feedback trade in the Bitcoin—and why?
Karaa, R.; Slim, S.; Goodell, J.W.; Goyal, A.; Kallinterakis, V.
Authors
S. Slim
J.W. Goodell
A. Goyal
Dr Vasileios Kallinterakis vasileios.kallinterakis@durham.ac.uk
Associate Professor
Abstract
We empirically examine whether feedback traders are active in the Bitcoin and the extent to which their presence is affected by a series of noise-related factors (sentiment; volume; liquidity) at three different frequencies (hourly; daily; weekly) for the April 2013–July 2019 period based on Bitstamp data. Our findings suggest that positive feedback trading grows stronger for higher (hourly; daily) frequencies, with its presence manifesting itself mainly during periods of high/improving sentiment and high/rising volume/liquidity. Additional tests reveal that the significance of hourly feedback trading is identified during hours corresponding to the trading hours of major European/North American markets. Overall, our results confirm extant literature evidence on the prevalence of noise trading in cryptocurrencies, while further showcasing that the factors motivating feedback trading in other asset classes (equities; ETFs; futures) exhibit similar effects over the presence of feedback traders in the cryptocurrency market.
Citation
Karaa, R., Slim, S., Goodell, J., Goyal, A., & Kallinterakis, V. (online). Do investors feedback trade in the Bitcoin—and why?. European Journal of Finance, 30(16), 1951-1971. https://doi.org/10.1080/1351847x.2021.1973054
Journal Article Type | Article |
---|---|
Acceptance Date | Aug 16, 2021 |
Online Publication Date | Sep 15, 2021 |
Deposit Date | Mar 31, 2023 |
Journal | European Journal of Finance |
Print ISSN | 1351-847X |
Electronic ISSN | 1466-4364 |
Publisher | Taylor and Francis Group |
Peer Reviewed | Peer Reviewed |
Volume | 30 |
Issue | 16 |
Pages | 1951-1971 |
DOI | https://doi.org/10.1080/1351847x.2021.1973054 |
Public URL | https://durham-repository.worktribe.com/output/1178007 |
Publisher URL | https://www.tandfonline.com/doi/full/10.1080/1351847X.2021.1973054 |
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