Description
TL;DR: A behavioral-finance study testing the disposition effect in Bitcoin rather than assuming crypto traders evolved beyond ordinary human mistakes.
About This Document
Jürgen E. Schatzmann and Bernhard Haslhofer examine whether Bitcoin sales occur more often under positive market conditions and less often under negative ones. Their empirical results find the familiar pattern of realizing gains too early and retaining losses too long, with the effect especially visible from the 2017 boom-and-bust period onward.
Why Bitcoin People May Care
Bitcoin changes settlement and custody. It does not patch the trader. This paper supplies a measured look at behavior in an atypical market and connects on-chain cryptocurrency activity with a long-established bias from traditional finance.
What You Receive
Purchase reveals the verified preserved PDF location for this document.
Document Details
- Title: Bitcoin Trading Is Irrational! An Analysis of the Disposition Effect in Bitcoin
- Author / organization: Jürgen E. Schatzmann and Bernhard Haslhofer
- Year: 2020
- Document type: Behavioral-finance research paper
- Pages: 29
CacheRat provides researched source-location and document-identification information. CacheRat does not claim ownership of the underlying third-party documentation.
