Bitcoin, speculative sentiments and crypto-assets valuation

What factors drive the valuation of Bitcoin and other crypto-assets? We use a novel measure and show that [1] Sentiments in Bitcoin drive the price action and have a material effect on returns [2] Sentiments in Bitcoin drive the valuation of other cryptocurrency assets [3] Sentiments in Bitcoin drive returns in other cryptocurrency assets. Our results show that optimistic sentiments in Bitcoin drive overvaluation in Bitcoin itself and other cryptocurrency assets. Our results support the notion that liquidity measures are salient factors in price discovery.

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Year of publication:	2024-03-18
Authors:	Tut, DANIEL

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Type of publication:	Book / Working Paper
Language:	English
Notes:	Tut, DANIEL (2024): Bitcoin, speculative sentiments and crypto-assets valuation.
Classification:	D8 - Information and Uncertainty ; D84 - Expectations; Speculations ; G21 - Banks; Other Depository Institutions; Mortgages ; G24 - Investment Banking; Venture Capital; Brokerage ; G3 - Corporate Finance and Governance ; G32 - Financing Policy; Capital and Ownership Structure ; G39 - Corporate Finance and Governance. Other
Source:	BASE

Persistent link: https://www.econbiz.de/10015213426