The reversal in the cryptocurrency market before and during the Covid-19 pandemic: Does investor attention matter?

ABSTRACT: This study delves into the impact of reversals and investor attention on cryptocurrency returns before and during the COVID-19 pandemic. We employ the Two Stages Least Squares to analyze a sample of the top 20 cryptocurrencies from January 2016 to April 2021. Our results reveal that investor attention positively influences bitcoin returns in both periods, with a more pronounced effect during the pandemic. Conversely, reversals demonstrate a positive correlation with cryptocurrency returns before the outbreak but a negative relationship during the pandemic. Our robustness test further indicates that investor attention positively affects the returns of small and medium-cap cryptocurrencies, while reversals only exhibit positive consequences for small-cap cryptocurrencies. Additionally, our f

SUBMITTER: Pham H 

PROVIDER: S-EPMC11602072 | biostudies-literature | 2024

REPOSITORIES: biostudies-literature