The Intraday Bitcoin Response to Tether Minting and Burning Events: Asymmetry, Investor Sentiment, and ?Whale Alerts? on Twitter

【Author】 Saggu, Aman

【Source】FINANCE RESEARCH LETTERS

【影响因子】9.848

【Abstract】Tether Limited has the sole authority to create (mint) and destroy (burn) Tether stablecoins (USD 7). This paper investigates Bitcoin's response to USD7 supply change events between 2014 and 2021 and identifies an interesting asymmetry between Bitcoin's responses to USD7 minting and burning events. Bitcoin responds positively to USD7 minting events over 5- to 30-minute event windows, but this response begins declining after 60 minutes. State-dependence is also demonstrated, with Bitcoin prices exhibiting a greater increase when the corresponding USD7 minting event coincides with positive investor sentiment and is announced to the public by data service provider, Whale Alert, on Twitter.

【Keywords】Bitcoin; Tether; Asset Pricing; Market Efficiency; Stablecoins; Event Studies

【发表时间】2022 OCT

【收录时间】2022-08-15

【文献类型】实证数据

【主题类别】

区块链治理-市场治理-市场分析