Unraveling the effects of google search on volatility of cryptocurrencies

Zhao Cai, Eric T.K. Lim, Fei Liu, Chee Wee Tan, Zhiqiang Zheng

Research output: Chapter in Book/Conference proceedingConference contributionpeer-review

4 Citations (Scopus)

Abstract

Although cryptocurrencies have garnered enormous public attention in recent times, extensive fluctuations in their prices have deterred prospective investors. Due to the absence of a centralized valuation authority, the credibility of cryptocurrencies as a viable investment vehicle remains elusive. Building on attention theory, this study posits that prospective investors of cryptocurrencies are likely to search online for information before deciding whether to make a commitment. We hence investigate the effects of Google search on the return and risk of 268 cryptocurrencies over 181 trading days. Results indicate that the Google Search Volume Index (SVI) of a given cryptocurrency exerts significant and positive impact on its price and turnover.

Original languageEnglish
Title of host publicationInternational Conference on Information Systems 2018, ICIS 2018
PublisherAssociation for Information Systems
ISBN (Electronic)9780996683173
Publication statusPublished - 2018
Event39th International Conference on Information Systems, ICIS 2018 - San Francisco, United States
Duration: 13 Dec 201816 Dec 2018

Publication series

NameInternational Conference on Information Systems 2018, ICIS 2018

Conference

Conference39th International Conference on Information Systems, ICIS 2018
Country/TerritoryUnited States
CitySan Francisco
Period13/12/1816/12/18

Keywords

  • Attention economy
  • Cryptocurrency
  • Google search
  • Return
  • Risk

ASJC Scopus subject areas

  • Computer Science Applications
  • Statistics, Probability and Uncertainty
  • Library and Information Sciences
  • Applied Mathematics

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