Role of hedging on crypto returns predictability: A new habit-based explanation

Dunbar, Kwamie; Owusu-Amoako, Johnson

doi:10.1016/j.frl.2023.104009

Cited by 1 publication

(1 citation statement)

References 36 publications

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“…Dunbar and Owusu-Amoako (2023a) show that the trading behavior of speculative retail traders, specifically net-short trading behavior, was a significant determinant of cryptocurrency returns, providing evidence that trading behaviors could predict crypto returns. In contrast, Dunbar and Owusu-Amoako (2023b) propose a new habit-based explanation for crypto return predictability and argue that risk-averse commercial traders' net positions in futures had a statistically significant and economically substantial impact on the predictability of crypto returns. This was particularly evident through its moderating effects on risk aversion and uncertainty channels, underscoring the role of hedging in predicting crypto returns.…”

Section: Global Main Pathmentioning

confidence: 95%

Tracing Knowledge Diffusion Trajectories in Scholarly Bitcoin Research: Co-Word and Main Path Analyses

Rejeb

Alnabulsi

et al. 2023

JRFM

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In the burgeoning field of bitcoin research, a cohesive understanding of how knowledge and insights have evolved over time is lacking. This study aims to address this gap through an exploration of 4123 academic articles pertaining to bitcoin. Utilizing co-word analysis and main path analysis (MPA), it uncovers key themes and seminal works that have substantially influenced the field’s progression. The identified clusters, including safe haven, internet of things (IoT), proof of work (PoW), market efficiency, sentiment analysis, digital currency, and privacy, shed light on the multifaceted discourse surrounding bitcoin. The MPA, incorporating both forward and backward local paths, traces an evolving narrative, starting from an in-depth exploration of bitcoin’s structure, anonymity, and contrasts against traditional financial assets. It tracks the shift in focus to broader market dynamics, volatility, speculative nature, and reactions to economic policy fluctuations. The analysis underscores the transformation of bitcoin research, from its beginnings as a decentralized, privacy-oriented currency to its role in global economics and green financing, revealing a complex narrative of an innovative financial instrument to a multifaceted entity. Implications drawn from this analysis include the need for further research on the potential integration of bitcoin within emerging technologies like AI and cybersecurity, the implications of bitcoin’s interplay with traditional financial systems, and the environmental impacts of bitcoin and blockchain utilization. Overall, the current study not only enhances our understanding of the bitcoin field but also charts its dynamic evolution and stimulates further academic inquiry.

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Section: Global Main Pathmentioning

confidence: 95%