Exploring the short-term momentum effect in the cryptocurrency market

Nguyen, Ha; Liu, Bin; Parikh, Nirav

doi:10.1007/s40844-020-00176-z

Cited by 11 publications

(5 citation statements)

References 37 publications

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“…Finally, implications and recommendations for cryptocurrency marketers wishing to improve their marketing efforts through AI-driven approaches will be provided. Through our thorough investigation, we hope to shed light on the revolutionary potential of AI-optimized client segmentation for focused cryptocurrency marketing (Nguyen et al, 2020).…”

Section: Ai-driven Customer Segmentationmentioning

confidence: 99%

AI-Optimized Customer Segmentation for Targeted Cryptocurrency Marketing

Khair

2024

Asian bus. rev.

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This study examines how AI-optimized consumer segmentation may enhance well-focused Bitcoin marketing campaigns. The primary goals are to investigate the theoretical underpinnings, conduct empirical evaluations, and offer valuable recommendations for cryptocurrency marketers. Methodologically, a thorough literature research is carried out, and then actual data from the real world is used for empirical analysis. Important discoveries show that AI-driven segmentation promotes user engagement, increases marketing efficacy, and supports long-term growth in the Bitcoin ecosystem. However, restrictions like algorithmic bias and data privacy issues demand policy changes. To solve these issues, it is advised to implement ethical standards, industry collaboration, educational initiatives, and regulatory guidelines. This study demonstrates how AI-optimized segmentation may revolutionize targeted cryptocurrency marketing by promoting user loyalty, meaningful interaction, and sustainable growth.

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Section: Ai-driven Customer Segmentationmentioning

confidence: 99%

AI-Optimized Customer Segmentation for Targeted Cryptocurrency Marketing

Khair

2024

Asian bus. rev.

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“…8. The emerging technologies, such as blockchain, cryptocurrency and big data, are widely applied in the various fields of the financial industry (Corbet et al , 2020a, 2022c). Cryptocurrency, in its various forms, has presented several avenues of influence, presenting significant benefits in the areas of cross-border financial transfers, portfolio diversification (Katsiampa et al , 2019a, 2019b; Corbet and Katsiampa, 2020) and a digital store of value (as per the work of Nguyen et al , 2020; Leung and Nguyen, 2019; Corbet et al , 2020b, 2020c, 2021). However, it has simultaneously been attributed to substantial growth in market abnormalities, both ethically flawed and illicit behaviour, and broad regulatory ambiguity (as per Akyildirim et al , 2020a, 2020b and Corbet et al , 2020d, 2020e).…”

Section: Notesmentioning

confidence: 99%

Do financial innovations influence bank performance? Evidence from China

Corbet,

Hou,

et al. 2023

SEF

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Purpose The rapid growth of Fintech presents a growing challenge for banking institutions, particularly those with more traditional, service backgrounds. This paper aims to examine the relationship between Fintech innovation and bank performance by exploiting novel Chinese market data. Design/methodology/approach Guided by the work of Dietrich and Wanzenried (2011, 2014) and Phan et al. (2019), the authors construct a regression model to investigate the effect of Fintech innovation on the profitability of Chinese listed banks. The authors include their measures of Fintech innovation in each of their selected structures. Findings Results indicate that Fintech innovation is negatively associated with bank performance and that state-owned banks, joint-stock commercial banks and long-established banks are more negatively impacted by Fintech innovation relative to city and rural commercial banks and younger banks. Originality/value Risk tolerance levels, internal structure and efficiency and recent debt repayment performance channels are each shown to be significant, robust explanatory factors underpinning such results.

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“…The literature on cryptocurrency pricing and performance analysis has only few research that have contributed to it. Nguyen et al [ 24 ] explore the effect of short-term momentum in the cryptocurrency market from the perspective of asset pricing and portfolio management. They investigate and compare short-term momentum effects, particularly 3-day, 7-day, and monthly momentum effects, in the cryptocurrency market and find that large-cap cryptocurrencies outperform small-cap cryptocurrencies.…”

Section: Literature Reviewmentioning

confidence: 99%

A K-Means Classification and Entropy Pooling Portfolio Strategy for Small and Large Capitalization Cryptocurrencies

Clément

Angaman

2023

Entropy

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In this study, we propose three portfolio strategies: allocation based on the normality assumption, the skewed-Student t distribution, and the entropy pooling (EP) method for 14 small- and large-capitalization (cap) cryptocurrencies. We categorize our portfolios into three groups: portfolio 1, consisting of three large-cap cryptocurrencies and four small-cap cryptocurrencies from various K-means classification clusters; and portfolios 2 and 3, consisting of seven small-cap and seven large-cap cryptocurrencies, respectively. Then, we investigate the performance of the proposed strategies on these portfolios by performing a backtest during a crypto market crash. Our backtesting covers April 2022 to October 2022, when many cryptocurrencies experienced significant losses. Our results indicate that the wealth progression under the normality assumption exceeds that of the other two strategies, though they all exhibit losses in terms of final wealth. In addition, we found that portfolio 3 is the best-performing portfolio in terms of wealth progression and performance measures, followed by portfolios 1 and 2, respectively. Hence, our results suggest that investors will benefit from investing in a portfolio consisting of large-cap cryptocurrencies. In other words, it may be safer to invest in large-cap cryptocurrencies than in small-cap cryptocurrencies. Moreover, our results indicate that adding large- and small-cap cryptocurrencies to a portfolio could improve the diversification benefit and risk-adjusted returns. Therefore, while cryptocurrencies may offer potentially high returns and diversification benefits in a portfolio, investors should be aware of the risks and carefully consider their investment objectives and risk tolerance before investing in them.

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Exploring the short-term momentum effect in the cryptocurrency market

Cited by 11 publications

References 37 publications

AI-Optimized Customer Segmentation for Targeted Cryptocurrency Marketing

AI-Optimized Customer Segmentation for Targeted Cryptocurrency Marketing

Do financial innovations influence bank performance? Evidence from China

A K-Means Classification and Entropy Pooling Portfolio Strategy for Small and Large Capitalization Cryptocurrencies

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