Author(s)

Yuxin Guo

Corresponding Author

Yuxin Guo

ABSTRACT

Bitcoin investing has become increasingly popular recently. A myriad of researches has centred on it, while the conclusions are disparate. In this paper, the unary multiple linear regression model is introduced to investigate the relationship between Bitcoin volatility and investor sentiment, as well as the macro investing market, with the trading data tracing back to the beginning of 2004 from Coinmarketcap. An abnormal instability and significance level in the course of empirical research and robustness test are found surprisingly. Consequently, it is assumed, a priori, that this abnormity could be ascribed to the Blockchain industry upheaval in 2018. This assumption is proved in the supplementary period segment experiment that both of the roles of synthesized sentiment index and investing index appear to be conspicuously reversed before and after the collapse.

KEYWORDS

Bitcioin, volatility, sentiment index, blockchain bubble