TY - JOUR
T1 - Assessing the Influence of Celebrity and Government Endorsements on Bitcoin’s Price Volatility
AU - Ullah, Subhan
AU - Attah-Boakye, Rexford
AU - Adams, Kweku
AU - Zaefarian, Ghasem
N1 - Publisher Copyright:
© 2022 Elsevier Inc.
PY - 2022/6/1
Y1 - 2022/6/1
N2 - The global market capitalisation of bitcoin has exponentially increased in recent years and there are concerns that the current prices of bitcoin do not reflect the true and fair underlying value of this particular type of digital asset. Applying Cue utilisation theory and signalling theory, and using a panel data on bitcoin prices from Bloomberg between 1st November 2019 and 31st May 2021, we examine the association between celebrity and government endorsements and volatility in bitcoin prices. We find that positive celebrity tweets and positive government sentiments towards bitcoin are significantly positively associated with positive changes in its prices. Our findings imply that although celebrity endorsements may cause a temporary ‘exponential rise’ in bitcoin prices, investors need to carefully diversify their portfolio to maximise their risk–return relationship.
AB - The global market capitalisation of bitcoin has exponentially increased in recent years and there are concerns that the current prices of bitcoin do not reflect the true and fair underlying value of this particular type of digital asset. Applying Cue utilisation theory and signalling theory, and using a panel data on bitcoin prices from Bloomberg between 1st November 2019 and 31st May 2021, we examine the association between celebrity and government endorsements and volatility in bitcoin prices. We find that positive celebrity tweets and positive government sentiments towards bitcoin are significantly positively associated with positive changes in its prices. Our findings imply that although celebrity endorsements may cause a temporary ‘exponential rise’ in bitcoin prices, investors need to carefully diversify their portfolio to maximise their risk–return relationship.
KW - Bitcoin
KW - Price changes
KW - Cues and signals
KW - Celebrity endorsement
KW - Investors decision-making
UR - http://www.scopus.com/inward/record.url?scp=85125903714&partnerID=8YFLogxK
U2 - 10.1016/j.jbusres.2022.01.055
DO - 10.1016/j.jbusres.2022.01.055
M3 - Article
VL - 145
SP - 228
EP - 239
JO - Journal of Business Research
JF - Journal of Business Research
SN - 0148-2963
ER -
