IDEAS home Printed from https://ideas.repec.org/a/ebj/ijpssr/2025v4iia8.html
   My bibliography  Save this article

Investor Sentiments and Bitcoin Volatility: Empirical Evidence from Cryptocurrency Market

Author

Listed:
  • Mubashir Zaman
  • Dr. Surayya Jamal
  • Humma Abid
  • Farhan Ahmad

Abstract

The present study goals to examine the impact of investors’ sentiment, such as overconfidence, optimism, pessimism, and reasonable investor expectations, on Bitcoin currency. Therefore, daily Bitcoin trading data was taken from CoinMarketCap. The data period consists of January 2023 to December 2024. The unit root stationary, GARCH (1,1) model and ordinary least square (OLS) regression test were used. The unit root stationary (ADF) test results reveal that all variables are stationary at level. The GARCH (1,1) model suggests that the lagged trading volume has a considerable positive influence on the current Bitcoin trade volume. Further GARCH (1,1) results demonstrate that optimism has a positive significant impact on and pessimism has a negative significant influence on Bitcoin exchange volume. Whereas ordinary least square regression (OLS) models also show that optimism has a positive significant impact and pessimism has a negative impact on Bitcoin trade volume. The study has various suggestions for stakeholders, investors, policymakers, and researchers.

Suggested Citation

  • Mubashir Zaman & Dr. Surayya Jamal & Humma Abid & Farhan Ahmad, 2025. "Investor Sentiments and Bitcoin Volatility: Empirical Evidence from Cryptocurrency Market," International Journal of Politics & Social Sciences Review (IJPSSR), International Journal of Politics & Social Sciences Review (IJPSSR), vol. 4(I), pages 97-103.
    • Handle: RePEc:ebj:ijpssr:2025v4iia8
    as

    Download full text from publisher

    File URL: https://ojs.ijpssr.org.pk/index.php/ijpssr/article/download/106/87/1470
    Download Restriction: no
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ebj:ijpssr:2025v4iia8. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Hazrat Bilal (email available below). General contact details of provider: http://www.ijpssr.org.pk .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.