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From zero to hero: Memecoins’ spillover effects in cryptocurrency markets

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  • Galati, Luca
  • Perdichizzi, Salvatore

Abstract

We analyze Trump’s memecoin launch, showing heterogeneous volatility spillovers driven by sentiment and fundamentals. Political signals amplified speculative dynamics, underscoring how politics increasingly shapes cryptocurrency markets and investor behavior.

Suggested Citation

  • Galati, Luca & Perdichizzi, Salvatore, 2025. "From zero to hero: Memecoins’ spillover effects in cryptocurrency markets," Economics Letters, Elsevier, vol. 253(C).
    • Handle: RePEc:eee:ecolet:v:253:y:2025:i:c:s0165176525002186
    DOI: 10.1016/j.econlet.2025.112381
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    References listed on IDEAS

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    1. Engle, Robert F. & Kroner, Kenneth F., 1995. "Multivariate Simultaneous Generalized ARCH," Econometric Theory, Cambridge University Press, vol. 11(1), pages 122-150, February.
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    Cited by:

    1. Conlon, Thomas & Corbet, Shaen, 2025. "Memecoin contagion: Irrationality, illicit behaviour, and Cryptocurrency risk," Finance Research Letters, Elsevier, vol. 86(PA).

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    More about this item

    Keywords

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    JEL classification:

    • D47 - Microeconomics - - Market Structure, Pricing, and Design - - - Market Design
    • F31 - International Economics - - International Finance - - - Foreign Exchange
    • F61 - International Economics - - Economic Impacts of Globalization - - - Microeconomic Impacts
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G41 - Financial Economics - - Behavioral Finance - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making in Financial Markets

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