Assessing the Influence of Celebrity and Government Endorsements on Bitcoin’s Price Volatility

Subhan Ullah; Rexford  Attah-Boakye; Kweku Adams; Ghasem Zaefarian

doi:10.1016/j.jbusres.2022.01.055

Assessing the Influence of Celebrity and Government Endorsements on Bitcoin’s Price Volatility

Subhan Ullah, Rexford Attah-Boakye, Kweku Adams, Ghasem Zaefarian

Research output: Contribution to journal › Article › peer-review

27 Citations (Scopus)

Abstract

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.

Original language	English
Pages (from-to)	228-239
Number of pages	12
Journal	Journal of Business Research
Volume	145
Early online date	9 Mar 2022
DOIs	https://doi.org/10.1016/j.jbusres.2022.01.055
Publication status	Published - 1 Jun 2022

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 8 Decent Work and Economic Growth
SDG 9 Industry, Innovation, and Infrastructure
SDG 16 Peace, Justice and Strong Institutions

Access to Document

10.1016/j.jbusres.2022.01.055Licence: CC BY

Cite this

@article{becd0f8d1de54cafa7ce62021b09b777,

title = "Assessing the Influence of Celebrity and Government Endorsements on Bitcoin{\textquoteright}s Price Volatility",

abstract = "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 {\textquoteleft}exponential rise{\textquoteright} in bitcoin prices, investors need to carefully diversify their portfolio to maximise their risk–return relationship.",

keywords = "Bitcoin, Price changes, Cues and signals, Celebrity endorsement, Investors decision-making",

author = "Subhan Ullah and Rexford Attah-Boakye and Kweku Adams and Ghasem Zaefarian",

note = "Publisher Copyright: {\textcopyright} 2022 Elsevier Inc.",

year = "2022",

month = jun,

day = "1",

doi = "10.1016/j.jbusres.2022.01.055",

language = "English",

volume = "145",

pages = "228--239",

journal = "Journal of Business Research",

issn = "0148-2963",

publisher = "Elsevier Inc.",

}

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

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 - https://www.scopus.com/pages/publications/85125903714

U2 - 10.1016/j.jbusres.2022.01.055

DO - 10.1016/j.jbusres.2022.01.055

M3 - Article

SN - 0148-2963

VL - 145

SP - 228

EP - 239

JO - Journal of Business Research

JF - Journal of Business Research

ER -

Assessing the Influence of Celebrity and Government Endorsements on Bitcoin’s Price Volatility

Abstract

UN SDGs

Access to Document

Other files and links

Fingerprint

Cite this