Can Bitcoin Investors Profit from Predictions by Crypto Experts?

Dirk Gerritsen, Rick Lugtigheid, Thomas Walther*

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review

Abstract

Using a hand-collected dataset containing bullish, neutral, and bearish predictions for Bitcoin published by crypto experts, we show that neutral and bearish predictions are followed by negative abnormal returns whereas bullish predictions are not associated with nonzero abnormal returns. Based on all outstanding predictions, we compute prediction revisions relative to (i) the latest issued prediction and (ii) the outstanding consensus prediction. Downward revisions are followed by negative abnormal returns. We conclude that crypto experts are skilled information intermediaries on the Bitcoin market.
Original languageEnglish
Article number102266
Pages (from-to)1-7
Number of pages7
JournalFinance Research Letters
Volume46
Issue numberPart A
DOIs
Publication statusPublished - May 2022

Bibliographical note

Publisher Copyright:
© 2021 The Author(s)

Keywords

  • Analysts
  • Bitcoin
  • Cryptocurrencies
  • Experts
  • Forecasts
  • Market efficiency
  • Predictions

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