Abstract

The rising popularity of bitcoin have attracted various types of investors. Different types of investors choose various investment strategies and thus make heterogeneous impacts on bitcoin market. In order to providing a comprehensive understanding of bitcoin volatility, this study intend to identify the roles of different types of investors in bitcoin market. It distinguish investors into three categories, namely speculators, economic value investors and technological value investors, according to their investment motivations and expectations. Moreover, the heterogeneous impacts of sentiments from different investors on bitcoin volatility are further studied. Results indicate that technological value investors and speculators are positively related to volatility, meanwhile economic value investors could alleviate volatility in bitcoin market. Further, the effect of sentiment of technological value investors on volatility is positive and significant during bubble period, while not significant during the stable period.

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Paper Number 1741; Track Blockchain; Complete Paper

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