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Published VersionCC BY V4.0, Open Access
Journal article
Exploring investor behavior in Bitcoin: a study of the disposition effect
Digital Finance, Vol.5, pp.581-612
2023
Appears in UniSC Supported Open Access Outputs
Abstract
Investors commonly exhibit the disposition effect—the irrational tendency to sell their winning investments and hold onto their losing ones. While this phenomenon has been observed in many traditional markets, it remains unclear whether it also applies to atypical markets like cryptoassets. This paper investigates the prevalence of the disposition effect in Bitcoin using transactions targeting cryptoasset exchanges as proxies for selling transactions. Our findings suggest that investors in Bitcoin were indeed subject to the disposition effect, with varying intensity. They also show that the disposition effect was not consistently present throughout the observation period. Its prevalence was more evident from the boom and bust year 2017 onwards, as confirmed by various technical indicators. Our study suggests irrational investor behavior is also present in atypical markets like Bitcoin.
Details
- Title
- Exploring investor behavior in Bitcoin: a study of the disposition effect
- Authors
- Jürgen E. Schatzmann (Corresponding Author) - University of the Sunshine Coast, Queensland, School of Business and Creative IndustriesBernhard Haslhofer (Author) - Complexity Science Hub Vienna
- Publication details
- Digital Finance, Vol.5, pp.581-612
- Publisher
- Springer Cham
- Date published
- 2023
- DOI
- 10.1007/s42521-023-00086-w
- ISSN
- 2524-6186; 2524-6984
- Copyright note
- This article is licensed under a Creative Commons Attribution 4.0 International License, which permits use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons licence, and indicate if changes were made. The images or other third party material in this article are included in the article's Creative Commons licence, unless indicated otherwise in a credit line to the material. If material is not included in the article's Creative Commons licence and your intended use is not permitted by statutory regulation or exceeds the permitted use, you will need to obtain permission directly from the copyright holder. To view a copy of this licence, visit http://creativecommons.org/licenses/by/4.0/.
- Organisation Unit
- School of Business and Creative Industries; University of the Sunshine Coast, Queensland
- Language
- English
- Record Identifier
- 99741795902621
- Output Type
- Journal article
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