The Intraday Bitcoin Response to Tether Minting and Burning Events : Asymmetry, Investor Sentiment, and 'Whale Alerts' on Twitter

Tether Limited has the sole authority to create (mint) and destroy (burn) Tether stablecoins (USD₮). This paper investigates Bitcoin's response to USD₮ supply change events between 2014 and 2021 and identifies an interesting asymmetry between Bitcoin's responses to USD₮ minting and burning events. Bitcoin responds positively to USD₮ minting events over 5- to 30-minute event windows, but this response begins declining after 60 minutes. State-dependence is also demonstrated, with Bitcoin prices exhibiting a greater increase when the corresponding USD₮ minting event coincides with positive investor sentiment and is announced to the public by data service provider, Whale Alert, on Twitter

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Year of publication:	[2022]
Authors:	Saggu, Aman
Publisher:	[S.l.] : SSRN
Subject:	Anlageverhalten \| Behavioural finance \| Social Web \| Social web \| Volatilität \| Volatility \| Ankündigungseffekt \| Announcement effect \| Virtuelle Währung \| Virtual currency
Description of contents:	Abstract [papers.ssrn.com]

Extent:	1 Online-Ressource
Type of publication:	Book / Working Paper
Language:	English
Notes:	In: Saggu, A., 2022. The Intraday Bitcoin Response to Tether Minting and Burning Events: Asymmetry, Investor Sentiment, and “Whale Alerts” on Twitter. Finance Research Letters, Vol. 49, October 2022. https://doi.org/10.1016/j.frl.2022.103096 Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments June 29, 2022 erstellt Volltext nicht verfügbar
Classification:	E50 - Monetary Policy, Central Banking and the Supply of Money and Credit. General ; G12 - Asset Pricing ; G14 - Information and Market Efficiency; Event Studies
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10013404593