Can Bitcoin Investors Profit from Buy, Hold, and Sell Recommendations by Crypto Analysts?

Using a hand-collected dataset containing buy, hold, and sell recommendations for Bitcoin published by crypto analysts, we show that hold and sell recommendations are followed by negative abnormal returns whereas buy recommendations are not associated with nonzero abnormal returns. Based on all outstanding recommendations, we compute recommendation changes relative to (i) the latest issued recommendation and (ii) the outstanding consensus recommendation. Downgrades are followed by negative abnormal returns. We conclude that crypto analysts are skilled information intermediaries on the Bitcoin market.