Topic: Investor Sentiment on the Cryptocurrency market - page 5. (Read 1013 times)
I would say my sentiment are all about the money that I am putting into it. This money is attached to me that way because I have hard earned it earlier and thus I know the importance of it. Whenever I go and invest my money into crypto world which is far more sensitive than anything then it creates a feeling inside my mind which drives me crazy. This is a sentiment where I get many questions in my mind, like what if I loose my investment, what if things go wrong with the project in which I have invested. I have always try to overcome this sentiment so that I can relax and make investment freely. But as you know most of the time our mind takes over things.
I came on this forum to get answers from the people who have already invested in cryptocurrencies or are actually experimented on this subject. My question to all of you is the following: From your point of view, what could be the factors responsible of sentiment on the cryptocurrency market ?
Earlier this year, there was a poll conducted in an attempt to quantify the percentage of population with current ownership of bitcoin or another crypto currency.
Poll numbers appeared to correlate a higher percentage of bitcoin (or crypto currency ownership) with higher inflation rates and greater risk of economic crisis. Nations like turkey and venezuela which are known to have high rates of fiat currency inflation reported some of the highest rates of crypto ownership in terms of population.
In terms of social issues, the consensus says it takes a long time for people to adjust and adopt change. When it was discovered that fruits could stave off scurvy for sailors on ships, it still took more than 10 years for people to accept that this worked. Its natural to expect a lengthy transition period between current markets and broader acceptance of crypto. With the main determining factor possibly being inflation rates and concern over economic crisis.
Below is a reference for your literary review.
https://bitcoinschannel.com/how-currency-crises-are-driving-nations-to-crypto/
FYI, I've posted a topic about cryptocurrencies' return a few months ago, but failed to get a response because of shitposters fiesta.
Anyway...
The journal by Wang & Vergne was published in 2017, I don't know if it's still suitable for the present date. However, this is not about the market as a whole but about some sample coins.
http://journals.plos.org/plosone/article?id=10.1371/journal.pone.0169556
Here are the findings:
If your research about the market as a whole, I think it still related to the macroeconomics, since cryptocurrencies price movement seems to conform with stocks price movement.
Just tentative ideas for proxies:
- Investor forecast on USD interest and the inflation rate;
- Investor forecast on US GDP growth.
But, I don't know if you should use global data or only US data. Maybe only US data is enough since the last major drop (10/11/2018) in US stock market seems to match with the crypto market.
- Number of ICOs;
- Trading volume.
But you might want to sort shitcoins out of your sample since I believe it will ruin your statistical analysis
Anyway...
The journal by Wang & Vergne was published in 2017, I don't know if it's still suitable for the present date. However, this is not about the market as a whole but about some sample coins.
http://journals.plos.org/plosone/article?id=10.1371/journal.pone.0169556
Here are the findings:
Quote
1. Technological development is positively and significantly associated with weekly returns.
This is related to GitHub activities (more is better).Quote
2. The public interest is negatively and significantly associated with weekly returns.
The funny thing is that if a coin got more buzz, the relationship would be negative.Quote
3. Liquidity is positively and significantly associated with returns.
More liquidity means more return. Maybe this is why coins want to be listed in the top exchanges.If your research about the market as a whole, I think it still related to the macroeconomics, since cryptocurrencies price movement seems to conform with stocks price movement.
Just tentative ideas for proxies:
- Investor forecast on USD interest and the inflation rate;
- Investor forecast on US GDP growth.
But, I don't know if you should use global data or only US data. Maybe only US data is enough since the last major drop (10/11/2018) in US stock market seems to match with the crypto market.
- Number of ICOs;
- Trading volume.
But you might want to sort shitcoins out of your sample since I believe it will ruin your statistical analysis
Hello everyone,
I am currently working on my Master Thesis and as you can guess, the subject of it is ‘Investor Sentiment on the Cryptocurrency market’.
I came on this forum to get answers from the people who have already invested in cryptocurrencies or are actually experimented on this subject. My question to all of you is the following: From your point of view, what could be the factors responsible of sentiment on the cryptocurrency market ?
Just to clarify the terms used in my question, Baker and Wurgler (2006) gives two definition of investor sentiment:
1) The propensity to take risks and to speculate.
2) The overall sense of optimism or pessimism about stocks
Also if you have any papers that could contribute to my Literature Review, I am willing to take your suggestions.
Best,
ycollin
I am currently working on my Master Thesis and as you can guess, the subject of it is ‘Investor Sentiment on the Cryptocurrency market’.
I came on this forum to get answers from the people who have already invested in cryptocurrencies or are actually experimented on this subject. My question to all of you is the following: From your point of view, what could be the factors responsible of sentiment on the cryptocurrency market ?
Just to clarify the terms used in my question, Baker and Wurgler (2006) gives two definition of investor sentiment:
1) The propensity to take risks and to speculate.
2) The overall sense of optimism or pessimism about stocks
Also if you have any papers that could contribute to my Literature Review, I am willing to take your suggestions.
Best,
ycollin
Hey Ycollin you have taken an interesting topic and I hope you write a good thesis, now coming back to your question there're multiple factors which lead to sentiments being high some are expected price hike, or a positive news which shall fuel price hikes, a prominent person throwing his weight behind cryptos, or a big organisation adopting it. It's pertinent to note that if any big country's government issues a positive signal for bitcoins its sentiment rises, as of now sentiments are bullish due to imminent pending approval of bitcoins etf.
the chain of events and price decline, i.e. each price should be considered as a starting point for further sale of this asset by another market participant. it is also necessary to consider the correspondence of the current price to its real need
Hello everyone,
I am currently working on my Master Thesis and as you can guess, the subject of it is ‘Investor Sentiment on the Cryptocurrency market’.
I came on this forum to get answers from the people who have already invested in cryptocurrencies or are actually experimented on this subject. My question to all of you is the following: From your point of view, what could be the factors responsible of sentiment on the cryptocurrency market ?
Just to clarify the terms used in my question, Baker and Wurgler (2006) gives two definition of investor sentiment:
1) The propensity to take risks and to speculate.
2) The overall sense of optimism or pessimism about stocks
Also if you have any papers that could contribute to my Literature Review, I am willing to take your suggestions.
Best,
ycollin
I am currently working on my Master Thesis and as you can guess, the subject of it is ‘Investor Sentiment on the Cryptocurrency market’.
I came on this forum to get answers from the people who have already invested in cryptocurrencies or are actually experimented on this subject. My question to all of you is the following: From your point of view, what could be the factors responsible of sentiment on the cryptocurrency market ?
Just to clarify the terms used in my question, Baker and Wurgler (2006) gives two definition of investor sentiment:
1) The propensity to take risks and to speculate.
2) The overall sense of optimism or pessimism about stocks
Also if you have any papers that could contribute to my Literature Review, I am willing to take your suggestions.
Best,
ycollin
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