Effect of twitter investor engagement on cryptocurrencies during the COVID-19 pandemic

Ahmed Bouteska; Petr  Hajek; Mohammad Abedin; Yizhe  Dong

doi:10.1016/j.ribaf.2022.101850

Effect of twitter investor engagement on cryptocurrencies during the COVID-19 pandemic

Ahmed Bouteska, Petr Hajek, Mohammad Abedin, Yizhe Dong

TUIBS Finance, Performance & Marketing

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Abstract

This study aims to examine whether the prices and returns of two cryptocurrencies, Dogecoin and Ethereum, are affected by Twitter engagement following the COVID-19 pandemic. We use the autoregressive integrated moving average with explanatory variables model to integrate the effects of investor attention and engagement on Dogecoin and Ethereum returns using data from December 31, 2020, to May 12, 2021. The results provide evidence supporting the hypothesis of a strong effect of Twitter investor engagement on Dogecoin returns; however, no potential impact is identified for Ethereum. These findings add to the growing evidence regarding the effect of social media on the cryptocurrency market and have useful implications for investors and corporate investment managers concerning investment decisions and trading strategies.

Original language	English
Article number	101850
Number of pages	13
Journal	Research in International Business and Finance
Volume	64
Early online date	20 Dec 2022
DOIs	https://doi.org/10.1016/j.ribaf.2022.101850
Publication status	Published - 1 Jan 2023

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title = "Effect of twitter investor engagement on cryptocurrencies during the COVID-19 pandemic",

abstract = "This study aims to examine whether the prices and returns of two cryptocurrencies, Dogecoin and Ethereum, are affected by Twitter engagement following the COVID-19 pandemic. We use the autoregressive integrated moving average with explanatory variables model to integrate the effects of investor attention and engagement on Dogecoin and Ethereum returns using data from December 31, 2020, to May 12, 2021. The results provide evidence supporting the hypothesis of a strong effect of Twitter investor engagement on Dogecoin returns; however, no potential impact is identified for Ethereum. These findings add to the growing evidence regarding the effect of social media on the cryptocurrency market and have useful implications for investors and corporate investment managers concerning investment decisions and trading strategies.",

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AB - This study aims to examine whether the prices and returns of two cryptocurrencies, Dogecoin and Ethereum, are affected by Twitter engagement following the COVID-19 pandemic. We use the autoregressive integrated moving average with explanatory variables model to integrate the effects of investor attention and engagement on Dogecoin and Ethereum returns using data from December 31, 2020, to May 12, 2021. The results provide evidence supporting the hypothesis of a strong effect of Twitter investor engagement on Dogecoin returns; however, no potential impact is identified for Ethereum. These findings add to the growing evidence regarding the effect of social media on the cryptocurrency market and have useful implications for investors and corporate investment managers concerning investment decisions and trading strategies.

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Effect of twitter investor engagement on cryptocurrencies during the COVID-19 pandemic

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