The impact of investor greed and fear on cryptocurrency returns: a Granger causality analysis of Bitcoin and Ethereum

• Published in: Review of behavioral finance Vol. 16; no. 5; pp. 819 - 835
• Main Authors: Cavalheiro, Everton Anger, Vieira, Kelmara Mendes, Thue, Pascal Silas
• Format: Journal Article
• Language: English
• Published: Leeds Emerald Publishing Limited 09.08.2024; Emerald Group Publishing Limited
• Subjects: Behavioral economics; Causality; Decision making; Digital currencies; Emotions; Fear & phobias; Influence; Institutional investments; Investigations; Investor behavior; Prices; Securities markets; Social networks; Volatility; Cryptocurrencies; Fear and greed index; Bitcoin; Ethereum; Investor sentiment; Financial market; Granger causality test

PurposeThis study probes the psychological interplay between investor sentiment and the returns of cryptocurrencies Bitcoin and Ethereum. Employing the Granger causality test, the authors aim to gauge how extensively the Fear and Greed Index (FGI) can predict cryptocurrency return movements, explori...