The Effect of Positive and Negative Events on Cryptocurrency Prices
In recent years, cryptocurrencies have become a new topic for financial studies. In this study, the effects of positive and negative events related to cryptocurrencies on the prices of related cryptocurrencies were researched using the event study. These events include major listing, delisting and a...
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| Format: | Article |
| Language: | English |
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Ekonomi ve Finansal Araştırmalar Derneği
2022-03-01
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| Series: | Ekonomi, Politika & Finans Araştırmaları Dergisi |
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| Online Access: | https://dergipark.org.tr/tr/download/article-file/2032416 |
| _version_ | 1797289521445863424 |
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| author | Emrah Öget |
| author_facet | Emrah Öget |
| author_sort | Emrah Öget |
| collection | DOAJ |
| description | In recent years, cryptocurrencies have become a new topic for financial studies. In this study, the effects of positive and negative events related to cryptocurrencies on the prices of related cryptocurrencies were researched using the event study. These events include major listing, delisting and airdrop announcements, and SEC enforcements. As a result of the analysis, 22 significant abnormal return values related to negative events and eight significant abnormal return values related to positive events were determined at 1% significance level within the event window (-5, +10). Therefore, it has been determined that negative events have more effect on cryptocurrencies than positive events. The number of significant cumulative abnormal return values obtained (13 for negative events, three for positive events) also supports these results. The results of the study have crucial implications for investors, centralized cryptocurrency exchanges, and cryptocurrency CEOs. Even after the negative events were announced publicly, pull out of the market will prevent investors from making more losses. In addition, it is recommended that investors sell for profits in case of a rapid high return on the day of the listing announcement. Because it was determined that the prices returned to the equilibrium prices at the closing. |
| first_indexed | 2024-03-07T19:06:11Z |
| format | Article |
| id | doaj.art-4245709fd45048c98d23fc1cacf48d5b |
| institution | Directory Open Access Journal |
| issn | 2587-151X |
| language | English |
| last_indexed | 2024-03-07T19:06:11Z |
| publishDate | 2022-03-01 |
| publisher | Ekonomi ve Finansal Araştırmalar Derneği |
| record_format | Article |
| series | Ekonomi, Politika & Finans Araştırmaları Dergisi |
| spelling | doaj.art-4245709fd45048c98d23fc1cacf48d5b2024-03-01T08:33:03ZengEkonomi ve Finansal Araştırmalar DerneğiEkonomi, Politika & Finans Araştırmaları Dergisi2587-151X2022-03-0171163110.30784/epfad.1011204957The Effect of Positive and Negative Events on Cryptocurrency PricesEmrah Öget0ZONGULDAK BÜLENT ECEVİT ÜNİVERSİTESİIn recent years, cryptocurrencies have become a new topic for financial studies. In this study, the effects of positive and negative events related to cryptocurrencies on the prices of related cryptocurrencies were researched using the event study. These events include major listing, delisting and airdrop announcements, and SEC enforcements. As a result of the analysis, 22 significant abnormal return values related to negative events and eight significant abnormal return values related to positive events were determined at 1% significance level within the event window (-5, +10). Therefore, it has been determined that negative events have more effect on cryptocurrencies than positive events. The number of significant cumulative abnormal return values obtained (13 for negative events, three for positive events) also supports these results. The results of the study have crucial implications for investors, centralized cryptocurrency exchanges, and cryptocurrency CEOs. Even after the negative events were announced publicly, pull out of the market will prevent investors from making more losses. In addition, it is recommended that investors sell for profits in case of a rapid high return on the day of the listing announcement. Because it was determined that the prices returned to the equilibrium prices at the closing.https://dergipark.org.tr/tr/download/article-file/2032416event studycryptocurrencyabnormal returnaltcoinolay çalışmasıkripto paraanormal getirialtcoin |
| spellingShingle | Emrah Öget The Effect of Positive and Negative Events on Cryptocurrency Prices Ekonomi, Politika & Finans Araştırmaları Dergisi event study cryptocurrency abnormal return altcoin olay çalışması kripto para anormal getiri altcoin |
| title | The Effect of Positive and Negative Events on Cryptocurrency Prices |
| title_full | The Effect of Positive and Negative Events on Cryptocurrency Prices |
| title_fullStr | The Effect of Positive and Negative Events on Cryptocurrency Prices |
| title_full_unstemmed | The Effect of Positive and Negative Events on Cryptocurrency Prices |
| title_short | The Effect of Positive and Negative Events on Cryptocurrency Prices |
| title_sort | effect of positive and negative events on cryptocurrency prices |
| topic | event study cryptocurrency abnormal return altcoin olay çalışması kripto para anormal getiri altcoin |
| url | https://dergipark.org.tr/tr/download/article-file/2032416 |
| work_keys_str_mv | AT emrahoget theeffectofpositiveandnegativeeventsoncryptocurrencyprices AT emrahoget effectofpositiveandnegativeeventsoncryptocurrencyprices |