Demonstrating that crypto and stock markets are moving in the same direction. Umar Z, Jareño F, MdlO G. The impact of COVID-19-related media coverage on the return and volatility connectedness of cryptocurrencies and fiat currencies. Sui X, Shi G, Hou G, Huang S, Li Y. Impacts of COVID-19 on the return and volatility nexus among cryptocurrency market. Singh S, Bansal P, Bhardwaj N. Correlation between geopolitical risk, economic policy uncertainty, and Bitcoin using partial and multiple wavelet coherence in P5 + 1 nations. Rahadian D, Nurfitriani W. Impact of news related to Covid-19 on stock market returns in five major ASEAN countries.

Blockchain allows this and NFTs (non-fungible tokens) are the new asset class everyone is now talking about, exemplified by the explosive growth of NBA Top Shot and the recent $69M purchase of a piece of virtual art at a Christie’s auction. Since digital assets can be freely copied and viewed, everyone has access to them, but NFTs represent a secure, verifiable way to give exactly one person ownership. On the other hand, traders who like to build their trading strategies more slowly based on reliable information and opinions will find that the signal to noise ratio on Stocktwits is just too low to be worth their time.

Availability of data and materials

Bridging the gap between fiat currency and cryptocurrency, stablecoins aim to achieve stable price valuation using different working mechanisms. Even the top altcoins like Terra can suffer overnight losses and struggle to survive. The idea behind decentralized algorithm stablecoin, such as TerraUSD, looks fascinating, but it needs a better strategy.

Choi and Shin argued that a shock mainly justifies the increase in Bitcoin prices to its price; however, other shocks, such as the VIX and projected inflation, generally support the drop. Nonetheless, several studies questioned the hedge and safe-haven properties of Bitcoin. In this regard, Smales advised that Bitcoin is more unpredictable, less liquid, and more https://www.beaxy.com/ expensive to trade than gold, which should exclude it as a safe-haven asset. Furthermore, Choi and Shin found that Bitcoin prices diminish considerably due to financial uncertainty shocks. Raheem noticed that before the pandemic, Bitcoin held its broadly agreed qualities, but the post-COVID-19 proclamation revealed that the safe-haven assumption has faded.

Crypto News

As the world saw the rise of trading apps like Robinhood, the subsequent rise in the noise of public advice was significant. It ushered in the growth of platforms like TipRanks, where users can follow others’ trades– and see the success of those trades mapped out on a global bitcoin cash stocktwits leaderboard. Koinly is a crypto-focused tax product that helps users navigate difficulties like tax lots, airdrops, DeFi interest payments, and trades across multiple exchanges. It sells its software both to individual users and to accountants who need crypto help.

Future research could implement a broader range of cryptocurrencies, such as Litecoin, Ethereum, Tether, and Ripple, to investigate the effects of COVID-19 pandemic news on their returns. Our study is also limited to indices provided by a data and analytics vendor, such as RavenPack. Therefore, future research should construct investor sentiment indices based on Google search terms or Twitter feeds. Another future study could divide the period to investigate the impact of pandemic news on the cryptocurrency market during each COVID-19 wave. Finally, more regions where Bitcoin is used in transactions could be covered. According to Sebastião and Godinho , Bitcoin’s “ecosystem” possesses many characteristics, including immateriality, decentralization, accessibility, and consensualness.

Szczygielski et al. found that pandemic-related uncertainty, lockdowns, and media attention primarily impacted financial markets. This paper examined whether daily changes in Bitcoin price react to COVID-19 pandemic news. The asymmetric volatility examination through EGARCH model exhibited that adverse and optimistic news have the same effect, hence the FOMO behavior not being supported. Additionally, we could argue that the cryptocurrency market seems resilient to the endless frictions brought on by the COVID-19 pandemic.

How to Trade Cryptocurrency

© 2023 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. Information GALA is provided ‘as-is’ and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see Barchart’s disclaimer. Wang P, Zhang W, Xiao L, Shen D. Is cryptocurrency a hedge or a safe haven for international indices? Wang C. Different GARCH models analysis of returns and volatility in Bitcoin.

Shocks of the daily number of newly reported COVID-19 deaths worldwide, the influence on daily changes of Bitcoin price is negative in most cases, but the statistical significance is weak. Furthermore, similar to the outcomes from Table ​ Table8, 8, both positive and negative shocks of VIX significantly negatively impact Bitcoin returns in the long-run. According to theory, any increase in market insecurity generates a capital outflow from risky assets to safer ones (Burggraf et al. 2021). In this regard, our study’s theoretical contribution is illustrated by the validation of Demir et al. ; Demir et al. . They suggest that Bitcoin can be regarded as a hedging instrument in times of extreme unpredictability. Contrary to Güler , the fear of missing out conduct of speculative and irrational investors does not prevail; emotions do not lead the Bitcoin market.

Stocktwits, on the other hand, really only has typical social media methods of establishing popularity, such as post counts and reposts, which are generally a poor method for establishing credibility in the financial world. This need to vet the information on Stocktwits before use is the major complaint that users of the platform have. Many traders would rather use more traditional sources of financial information that they feel is more reliable. As an information resource, StockTwits competes with a wide variety of information sources that traders use to guide their decisions, from traditional financial news websites and newsletters to more modern trading apps and alternative news sources. The Financial Stability Board proposed a framework for cryptocurrencies to the world’s largest economies that calls for stricter regulation of crypto assets, namely stablecoins.

Furthermore, because the ADF and PP tests are supposed to be biased toward I inferences, we employ the KPSS test of Kwiatkowski et al. , in line with Kakinaka and Umeno , Sahoo , and Karaömer . The results reveal that the variables are either I or I, but none of the measures is stationary at the second difference, thus supporting the appropriateness of the NARDL model. Appendix 5 reveals the outcomes of stationarity tests performed with the traditional methods. The NARDL model is estimated regardless of whether the variables are integrated of order 0 or 1 (I or I). Nevertheless, the NARDL framework cannot be considered if one of the variables is I since the value of the F-test related to the bounds testing cointegration approach is invalid.

This finding suggests that positive shocks can significantly impact volatility more than adverse ones. Cheikh et al. argued that investors seeking a hedge against a depressed stock market would transfer volatility and uncertainty to cryptocurrency markets throughout market tumult. Additionally, Fig.2 exhibits that the conditional variance of VIX is greater than that of Bitcoin. Due to low fundamental value, Mnif et al. proved that the major cryptocurrency markets experienced several short-lived bubbles during the coronavirus pandemic. Market stress increased belief dispersion, decreasing Bitcoin futures returns but significantly elevating volatility and trading volume in the pandemic phase compared to the pre-pandemic period .

RISKS

Kakinaka and Umeno claimed that COVID-19 enhanced herding in the short-term, but not in the long-term; however, Mnif and Jarboui claimed that the pandemic has lessened the herd bias. Moreover, Güler highlighted the FOMO behavior illustrated by the fear a Bitcoin investor encounters when overlooking a potentially profitable investment or trading opportunity. By examining the closing prices of Bitcoin, Ripple, Litecoin, and Dash, Nitithumbundit and Chan reported greater return persistence, volatility, and cross-dependency during the disease outbreak, proving increased risk. Furthermore, Usman and Nduka observed a rise in persistence levels compared to before COVID-19 was declared a pandemic. Sui et al. confirmed that the cryptocurrency market was impacted by COVID-19, which substantially increased its total risk spillover effect. Similarly, Nguyen confirmed a volatility spillover effect from the stock market to Bitcoin throughout the pandemic phase and other times of extreme uncertainty.

• Currently more than 40,000 investors per month are posting messages on cryptocurrencies via the StockTwits platform.
• They suggest that Bitcoin can be regarded as a hedging instrument in times of extreme unpredictability.
• Experts share how Bored Ape Yacht Club’s success has changed the NFT landscape for good.
• Béjaoui et al. reported short- and long-term support for the link between the Bitcoin price, social media metrics, and the intensity of the pandemic.

Umar et al. used only the Media Coverage Index and established that virtual currencies are net shock transmitters, whereas fiat currency is a net receiver. Vurur employed only the Panic Index and found that digital coins are more vulnerable to adverse headlines. Umar and Gubareva covered only Coronavirus Panic Index but explored Bloomberg Galaxy Crypto Index. Marobhe covered the corona Panic Index and demonstrated the longstanding resistance of cryptocurrencies to COVID-19. As such, previous studies used only one indicator to assess media exposure, frequently overlooking the different influences of various types of news reports, such as disinformation and public anger (Zhang et al. 2022). In this regard, Atri et al. highlighted the heterogeneous impacts, documenting that COVID-19 panic has a negative effect on crude oil prices; however, COVID-19 media coverage has a positive influence on oil prices in the short-term.

Behavioral finance has exposed a range of preconceptions that affect investment judgments . Banerjee argued that individuals would follow others instead of utilizing their knowledge. Youssef and Waked proved that media could influence investors’ behavior regarding the coronavirus, causing them to ignore their personal information and replicate other people’s investment choices.

• However, given the fact that there are no other comparable investor sentiment data on the crypto currency markets, a few investors have been willing to give this new dataset a try.
• Hence, high frequencies match short periods, and short frequencies relate to long periods.
• Raheem noticed that before the pandemic, Bitcoin held its broadly agreed qualities, but the post-COVID-19 proclamation revealed that the safe-haven assumption has faded.
• Compared to the S&P 500 Index, gold, and the US Dollar Index, Wang and Wang found that Bitcoin market efficiency is more resistant throughout the plague, supporting its safe-haven asset quality.

These are real-time indicators derived from the transactions on the Bitcoin Cash network. With Invezo, you have the ability to track how often a stock is being mentioned on Reddit, StocksTwits, Twitter and in the news. With our latest premium feature, you have the ability to see which cryptos have the highest change in their Twitter following.

Very few people have a negative experience with navigating StockTwits or finding information about the securities or topics that they are interested in. Rather, the negative feedback that StockTwits receives from its users concerns the actual content that is shared. When you choose to enable the cross-platform functionality, you can seamlessly move back and forth between trading securities on Robinhood and discussing them on StockTwits. This provides traders with a means of trading on Robinhood while also accessing the latest information that StockTwits has to offer.

These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in oureditorial policy. Vinamrata Chaturvedi is a former senior editor of blockchain and cryptocurrency at Investopedia. She has been covering crypto, economy, politics, social issues, and gender-related topics since 2013. She is a board member of the ACJR network, and her work has appeared on StockTwits, CoinDesk, CoinMarketCap, and Bitcoin Magazine.

The big question is whether StockTwits can lure a growing number of crypto investors to its platform and whether these investors will choose to continue posting relevant messages via their network. Although people have been quick to point to specific events as triggering the drop in prices of cryptocurrencies (e.g., China’s decision to ban new ICOs), you can almost never call a top or bottom in markets in the moment. Even with the benefit of hindsight, there is usually a cluster of events or conditions to point to. Bitcoin and other cryptocurrencies are very disruptive to traditional banking. Yet they also offer big opportunities for them to reduce costs, increase liquidity and improve customer information. Chase itself as a bank is embracing many aspects of cryptos, including ethereum.