Bitcoin volatility, stock market and investor sentiment. Are they connected?

Bitcoin is the cryptocurrency with the largest market capitalization, and many studies have examined its role in financial markets. In this manuscript, we contribute to the extant body of knowledge by analyzing the Bitcoin behavior and the effect that investor sentiment, S&P 500 returns, and VIX...

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Detalles Bibliográficos
Autores: López Cabarcos, María Ángeles, Pérez Pico, Ada María, Piñeiro Chousa, Juan Ramón, Šević, Aleksandar
Tipo de recurso: artículo
Fecha de publicación:2021
País:España
Institución:Universidad de Santiago de Compostela (USC)
Repositorio:Minerva. Repositorio Institucional de la Universidad de Santiago de Compostela
Idioma:inglés
OAI Identifier:oai:minerva.usc.gal:10347/42755
Acceso en línea:https://hdl.handle.net/10347/42755
Access Level:acceso abierto
Palabra clave:Bitcoin
S&P500
Social network sentiment
VIX
Descripción
Sumario:Bitcoin is the cryptocurrency with the largest market capitalization, and many studies have examined its role in financial markets. In this manuscript, we contribute to the extant body of knowledge by analyzing the Bitcoin behavior and the effect that investor sentiment, S&P 500 returns, and VIX returns have on Bitcoin volatility using GARCH and EGARCH models. The results suggest that Bitcoin volatility is more unstable in speculative periods. In stable periods, S&P 500 returns, VIX returns, and sentiment influence Bitcoin volatility.