The Relevance of Sentiment and Media Attention for Bitcoin Holdings Across Entities

55 Pages Posted: 14 May 2023

See all articles by Joscha Beckmann

Joscha Beckmann

FernUniversität in Hagen; Kiel Institute for the World Economy

Teo Geldner

FernUniversität in Hagen

Jan Wüstenfeld

Ruhr University of Bochum

Date Written: May 3, 2023

Abstract

We provide a novel perspective on the Bitcoin market, investigating determinants of investor positions and their response to public information. We distinguish between investors by size and observe their respective behaviour concerning incoming information.

We find that price dynamics and media coverage lead to different decisions depending on the Bitcoin portfolio size. Retail investors react strongly to incoming public information and media narratives, with their decisions strongly influenced by sentiment and media attention. Conversely, the response of large-scale investors to such information is much weaker because they arguably have different, non-public information and divergent investment objectives.

Keywords: Bitcoin, Sentiment, Media Attention, Investor behaviour, Entities

JEL Classification: E41, G11, G41

Suggested Citation

Beckmann, Joscha and Geldner, Teo and Wüstenfeld, Jan, The Relevance of Sentiment and Media Attention for Bitcoin Holdings Across Entities (May 3, 2023). Available at SSRN: https://ssrn.com/abstract=4436838 or http://dx.doi.org/10.2139/ssrn.4436838

Joscha Beckmann

FernUniversität in Hagen ( email )

Universitätsstrasse 41
Feithstrathe 140
Hagen, 58084
Germany

Kiel Institute for the World Economy ( email )

P.O. Box 4309
Kiel, Schleswig-Hosltein D-24100
Germany

Teo Geldner

FernUniversität in Hagen ( email )

Universitätsstrasse 41
Feithstrathe 140
Hagen, 58084
Germany

Jan Wüstenfeld (Contact Author)

Ruhr University of Bochum ( email )

Universitätsstraße 150
Bochum, NRW 44780
Germany

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