Trading cryptocurrencies as a pandemic pastime : COVID-19 lockdowns and Bitcoin volume

This paper examines the impact of COVID-19 lockdowns on Bitcoin trading volume. Using data from Apple mobility trends and several time-series econometric models, we find that investors became active participants during the COVID-19 pandemic period and traded more bitcoins on days with low mobility a...

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Autores:
Guzmán Vásquez, Alexander
Pinto Gutiérrez, Cristian A.
Trujillo Dávila , María Andrea
Tipo de recurso:
Article of investigation
Fecha de publicación:
2021
Institución:
Colegio de Estudios Superiores de Administración
Repositorio:
Repositorio CESA
Idioma:
eng
OAI Identifier:
oai:repository.cesa.edu.co:10726/5056
Acceso en línea:
http://hdl.handle.net/10726/5056
https://doi.org/10.3390/math9151771
Palabra clave:
Bitcoin
Trading
Volume
COVID-19
Lockdowns
Investor attention
Rights
openAccess
License
Abierto (Texto Completo)
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repository_id_str
spelling Guzmán Vásquez, Alexandere6815926-cc9f-40cd-bb0e-f549642805cf600Pinto Gutiérrez, Cristian A.0640209b-0d9c-494f-a183-cda82ecb6378600Trujillo Dávila , María Andrea5b131e3f-c0dd-4f10-9a55-2909001129ad600Guzmán Vásquez, Alexander [0000-0001-7675-048X]Pinto Gutiérrez, Cristian A. [0000-0002-7981-4968]Trujillo Dávila, María Andrea [0000-0002-9592-7890]Guzmán Vásquez, Alexander [55207224400]Pinto Gutiérrez, Cristian A. [57191261953]Trujillo Dávila, María Andrea [55206416700]2023-06-21T22:23:01Z2023-06-21T22:23:01Z2021-07-27http://hdl.handle.net/10726/5056instname:Colegio de Estudios Superiores de Administración – CESAreponame:Biblioteca Digital – CESArepourl:https://repository.cesa.edu.co/2227-7390https://doi.org/10.3390/math9151771engMDPI AGTrading cryptocurrencies as a pandemic pastime : COVID-19 lockdowns and Bitcoin volumearticlehttp://purl.org/coar/resource_type/c_2df8fbb1http://purl.org/coar/resource_type/c_6501info:eu-repo/semantics/articlehttp://purl.org/redcol/resource_type/ARThttp://purl.org/coar/version/c_71e4c1898caa6e32info:eu-repo/semantics/openAccessAbierto (Texto Completo)http://purl.org/coar/access_right/c_abf2This paper examines the impact of COVID-19 lockdowns on Bitcoin trading volume. Using data from Apple mobility trends and several time-series econometric models, we find that investors became active participants during the COVID-19 pandemic period and traded more bitcoins on days with low mobility associated with lockdown mandates. These results remain robust after controlling for stocks and gold returns, the VIX index, and the level of attention and sentiment toward Bitcoin, as measured by Google search frequencies and the tone of Tweets discussing Bitcoin. These results suggest that when individual investors have ample free time on their hands, they trade cryptocurrencies as a pastime and use the Bitcoin market as a form of entertainment. Moreover, our results have important implications concerning investors’ herding behavior and overconfidence leading to noise trader risks and bubbles typically accompanied by high trading volume in cryptocurrency markets.https://orcid.org/0000-0001-7675-048Xhttps://orcid.org/0000-0002-7981-4968https://orcid.org/0000-0002-9592-7890https://www.scopus.com/authid/detail.uri?authorId=55207224400https://www.scopus.com/authid/detail.uri?authorId=57191261953https://www.scopus.com/authid/detail.uri?authorId=55206416700915MathematicsBitcoinTradingVolumeCOVID-19LockdownsInvestor attention10726/5056oai:repository.cesa.edu.co:10726/50562023-10-02 20:07:47.364metadata only accessBiblioteca Digital - CESAbiblioteca@cesa.edu.co
dc.title.eng.fl_str_mv Trading cryptocurrencies as a pandemic pastime : COVID-19 lockdowns and Bitcoin volume
title Trading cryptocurrencies as a pandemic pastime : COVID-19 lockdowns and Bitcoin volume
spellingShingle Trading cryptocurrencies as a pandemic pastime : COVID-19 lockdowns and Bitcoin volume
Bitcoin
Trading
Volume
COVID-19
Lockdowns
Investor attention
title_short Trading cryptocurrencies as a pandemic pastime : COVID-19 lockdowns and Bitcoin volume
title_full Trading cryptocurrencies as a pandemic pastime : COVID-19 lockdowns and Bitcoin volume
title_fullStr Trading cryptocurrencies as a pandemic pastime : COVID-19 lockdowns and Bitcoin volume
title_full_unstemmed Trading cryptocurrencies as a pandemic pastime : COVID-19 lockdowns and Bitcoin volume
title_sort Trading cryptocurrencies as a pandemic pastime : COVID-19 lockdowns and Bitcoin volume
dc.creator.fl_str_mv Guzmán Vásquez, Alexander
Pinto Gutiérrez, Cristian A.
Trujillo Dávila , María Andrea
dc.contributor.author.spa.fl_str_mv Guzmán Vásquez, Alexander
Pinto Gutiérrez, Cristian A.
Trujillo Dávila , María Andrea
dc.contributor.orcid.none.fl_str_mv Guzmán Vásquez, Alexander [0000-0001-7675-048X]
Pinto Gutiérrez, Cristian A. [0000-0002-7981-4968]
Trujillo Dávila, María Andrea [0000-0002-9592-7890]
dc.contributor.scopus.none.fl_str_mv Guzmán Vásquez, Alexander [55207224400]
Pinto Gutiérrez, Cristian A. [57191261953]
Trujillo Dávila, María Andrea [55206416700]
dc.subject.proposal.none.fl_str_mv Bitcoin
Trading
Volume
COVID-19
Lockdowns
Investor attention
topic Bitcoin
Trading
Volume
COVID-19
Lockdowns
Investor attention
description This paper examines the impact of COVID-19 lockdowns on Bitcoin trading volume. Using data from Apple mobility trends and several time-series econometric models, we find that investors became active participants during the COVID-19 pandemic period and traded more bitcoins on days with low mobility associated with lockdown mandates. These results remain robust after controlling for stocks and gold returns, the VIX index, and the level of attention and sentiment toward Bitcoin, as measured by Google search frequencies and the tone of Tweets discussing Bitcoin. These results suggest that when individual investors have ample free time on their hands, they trade cryptocurrencies as a pastime and use the Bitcoin market as a form of entertainment. Moreover, our results have important implications concerning investors’ herding behavior and overconfidence leading to noise trader risks and bubbles typically accompanied by high trading volume in cryptocurrency markets.
publishDate 2021
dc.date.issued.none.fl_str_mv 2021-07-27
dc.date.accessioned.none.fl_str_mv 2023-06-21T22:23:01Z
dc.date.available.none.fl_str_mv 2023-06-21T22:23:01Z
dc.type.none.fl_str_mv article
dc.type.coar.fl_str_mv http://purl.org/coar/resource_type/c_6501
dc.type.coar.none.fl_str_mv http://purl.org/coar/resource_type/c_2df8fbb1
dc.type.driver.none.fl_str_mv info:eu-repo/semantics/article
dc.type.redcol.none.fl_str_mv http://purl.org/redcol/resource_type/ART
dc.type.coarversion.none.fl_str_mv http://purl.org/coar/version/c_71e4c1898caa6e32
format http://purl.org/coar/resource_type/c_2df8fbb1
dc.identifier.uri.none.fl_str_mv http://hdl.handle.net/10726/5056
dc.identifier.instname.none.fl_str_mv instname:Colegio de Estudios Superiores de Administración – CESA
dc.identifier.reponame.none.fl_str_mv reponame:Biblioteca Digital – CESA
dc.identifier.repourl.none.fl_str_mv repourl:https://repository.cesa.edu.co/
dc.identifier.eissn.none.fl_str_mv 2227-7390
dc.identifier.doi.none.fl_str_mv https://doi.org/10.3390/math9151771
url http://hdl.handle.net/10726/5056
https://doi.org/10.3390/math9151771
identifier_str_mv instname:Colegio de Estudios Superiores de Administración – CESA
reponame:Biblioteca Digital – CESA
repourl:https://repository.cesa.edu.co/
2227-7390
dc.language.iso.none.fl_str_mv eng
language eng
dc.relation.citationvolume.none.fl_str_mv 9
dc.relation.citationissue.none.fl_str_mv 15
dc.relation.ispartofjournal.none.fl_str_mv Mathematics
dc.rights.accessrights.none.fl_str_mv info:eu-repo/semantics/openAccess
dc.rights.local.none.fl_str_mv Abierto (Texto Completo)
dc.rights.coar.none.fl_str_mv http://purl.org/coar/access_right/c_abf2
eu_rights_str_mv openAccess
rights_invalid_str_mv Abierto (Texto Completo)
http://purl.org/coar/access_right/c_abf2
dc.publisher.none.fl_str_mv MDPI AG
publisher.none.fl_str_mv MDPI AG
institution Colegio de Estudios Superiores de Administración
repository.name.fl_str_mv Biblioteca Digital - CESA
repository.mail.fl_str_mv biblioteca@cesa.edu.co
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