Narrow Results

This research aims to examine the relationship between Cardano (ADA) return, which is used as a proxy for green cryptocurrency, and Google search volume (GSV), which is used as a proxy for investor attention. The weekly data cover the period from January 2018 to June 2022. To analyse the causal relationship between investor attention and Cardano returns, the VAR model and Granger causality tests are implemented. As a result, it is found that there is a bidirectional relationship between Cardano returns and investor attention. However, while changes in investor attention have little impact on the Cardano returns, changes in Cardano returns have a substantial impact on investors’ search intensity. Finally, it is concluded from the VAR results that both variables positively affect each other.

The price of bitcoin has changed significantly in recent years. At the same time, there are abundant media attention and news coverage of Bitcoin. This research applied Python to crawl Bitcoin daily exchange data and Google search volume index (SVI) from Coinmarketcap.com and Trends.Google.com and to conduct data cleaning to make the collected search volume data unified and comparable in a time series. This paper focuses on the association between SVI and changes in Bitcoin price. Specifically, this study looks into correlations between SVI, Bitcoin returns, and price volatilities by conducting a vector autoregression model. The results show that SVI has an evidently positive influence on both the return and volatility of Bitcoin, which means SVI could be used as an effective predictor in forecasting Bitcoin earnings. This paper enriches research on the impact of the Bitcoin search volume index on prices, which indicates that SVI is a meaningful evaluation index to invest in Bitcoin.