Using data on investor beliefs about future Bitcoin prices, we examine how investors form expectations about Bitcoin returns. We find that investors extrapolate from Bitcoin’s past returns, with more weight on recent returns. Compared to institutional investors, such extrapolative beliefs are...

We document a new pattern in stock returns that we call absolute strength momentum. Stocks that have signifi cantly increased in value in the recent past (absolute strength winners) continue to gain, and stocks that have signifi cantly decreased in value (absolute strength losers) continue to...