Small price bias in the cryptocurrency market. A cognitive bias revealed by emotions on social networks

Adriana García Londoño; Santiago Alonso Díaz

doi:10.1016/j.frl.2024.106141

Small price bias in the cryptocurrency market. A cognitive bias revealed by emotions on social networks

Adriana García Londoño
, Santiago Alonso Díaz

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

1 Scopus citations

Abstract

Cognitive biases influence cryptocurrency market outcomes. Of relevance for this work, investors react variably to low-priced cryptocurrencies, evident in market outcomes like volatility. We investigate whether low prices also drive emotional responses on Twitter. Results show emotions align with price levels, with stronger reactions to lower prices. We conclude that small prices affect investor emotions.

Original language	English
Article number	106141
Journal	Finance Research Letters
Volume	69
DOIs	https://doi.org/10.1016/j.frl.2024.106141
State	Published - Nov 2024
Externally published	Yes

Keywords

Behavioral Finance
Cognitive biases
Cryptocurrencies
Information, knowledge, and uncertainty
Number cognition
Role and effects of psychological, emotional, social, and cognitive factors on decision making
Small price bias

Access to Document

10.1016/j.frl.2024.106141

Cite this

@article{a2a1a4ea0e924a248948eddaac8efb50,

title = "Small price bias in the cryptocurrency market. A cognitive bias revealed by emotions on social networks",

abstract = "Cognitive biases influence cryptocurrency market outcomes. Of relevance for this work, investors react variably to low-priced cryptocurrencies, evident in market outcomes like volatility. We investigate whether low prices also drive emotional responses on Twitter. Results show emotions align with price levels, with stronger reactions to lower prices. We conclude that small prices affect investor emotions.",

keywords = "Behavioral Finance, Cognitive biases, Cryptocurrencies, Information, knowledge, and uncertainty, Number cognition, Role and effects of psychological, emotional, social, and cognitive factors on decision making, Small price bias",

author = "\{Garc{\'i}a Londo{\~n}o\}, Adriana and \{Alonso D{\'i}az\}, Santiago",

note = "Publisher Copyright: {\textcopyright} 2024 Elsevier Inc.",

year = "2024",

month = nov,

doi = "10.1016/j.frl.2024.106141",

language = "English",

volume = "69",

journal = "Finance Research Letters",

issn = "1544-6123",

publisher = "Elsevier Ltd.",

}

TY - JOUR

T1 - Small price bias in the cryptocurrency market. A cognitive bias revealed by emotions on social networks

AU - García Londoño, Adriana

AU - Alonso Díaz, Santiago

PY - 2024/11

Y1 - 2024/11

N2 - Cognitive biases influence cryptocurrency market outcomes. Of relevance for this work, investors react variably to low-priced cryptocurrencies, evident in market outcomes like volatility. We investigate whether low prices also drive emotional responses on Twitter. Results show emotions align with price levels, with stronger reactions to lower prices. We conclude that small prices affect investor emotions.

AB - Cognitive biases influence cryptocurrency market outcomes. Of relevance for this work, investors react variably to low-priced cryptocurrencies, evident in market outcomes like volatility. We investigate whether low prices also drive emotional responses on Twitter. Results show emotions align with price levels, with stronger reactions to lower prices. We conclude that small prices affect investor emotions.

KW - Behavioral Finance

KW - Cognitive biases

KW - Cryptocurrencies

KW - Information, knowledge, and uncertainty

KW - Number cognition

KW - Role and effects of psychological, emotional, social, and cognitive factors on decision making

KW - Small price bias

UR - https://www.scopus.com/pages/publications/85204492561

U2 - 10.1016/j.frl.2024.106141

DO - 10.1016/j.frl.2024.106141

M3 - Article

AN - SCOPUS:85204492561

SN - 1544-6123

VL - 69

JO - Finance Research Letters

JF - Finance Research Letters

M1 - 106141

ER -

Small price bias in the cryptocurrency market. A cognitive bias revealed by emotions on social networks

Abstract

Keywords

Access to Document

Other files and links

Fingerprint

Cite this