Do Investor Sentiments Drive Cryptocurrency Prices?

Erdinc Akyildirim*, Ahmet Faruk Aysan, Oguzhan Cepni, S. Pinar Ceyhan Darendeli

*Corresponding author for this work

Research output: Contribution to journalJournal articleResearchpeer-review

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This paper studies the dynamic network connectedness between cryptocurrency returns and sentiments using the novel cryptocurrency-specific MarketPsych sentiment data for 13 cryptocurrencies with the highest market capitalization. The results indicate the dominance of cryptocurrencies with higher market capitalization and information transmission from cryptocurrency returns to sentiments. Our results also show that Bitcoin is losing its dominance to alt-coins in return spillovers while still dominant in sentiment spillovers.

Original languageEnglish
Article number109980
JournalEconomics Letters
Number of pages6
Publication statusPublished - Sept 2021

Bibliographical note

Epub ahead of print. Published online: 8 Jul 2021.


  • Cryptocurrency
  • Sentiment
  • Spillovers

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