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Visceral emotions and Bitcoin trading

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  • Ahn, Yongkil
  • Kim, Dongyeon

Abstract

Using a new emotion-mining technique, we quantify visceral emotions among Bitcoin investors and investigate whether an empirical connection exists between micro-level visceral emotions and macro-level price dynamics in the cryptocurrency market. We find that cryptocurrency market investors carry visceral emotions. Bitcoin's intraday volatility and trading volume are associated with visceral emotions. This association is more salient for negative emotions. This form of emotional trading can cause a more behavioral group of investors to perform poorly in the cryptocurrency market.

Suggested Citation

  • Ahn, Yongkil & Kim, Dongyeon, 2023. "Visceral emotions and Bitcoin trading," Finance Research Letters, Elsevier, vol. 51(C).
    • Handle: RePEc:eee:finlet:v:51:y:2023:i:c:s1544612322006341
    DOI: 10.1016/j.frl.2022.103458
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    References listed on IDEAS

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    More about this item

    Keywords

    Visceral emotions; Bitcoin; Return; Volatility; Trading volume;
    All these keywords.

    JEL classification:

    • 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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