Time-Varying Nexus between Investor Sentiment and Cryptocurrency Market: New Insights from a Wavelet Coherence Framework

This study attempts to investigate the nexus between investor sentiment and cryptocurrencies prices. Our empirical investigation merges bivariate multivariate wavelet tools examine inter-cryptocurrencies The outcomes show that Sentix Investor Confidence index provides significant information in explaining long-term changes Bitcoin Litecoin Moreover, findings generated from multiple coherence illustrate simultaneous contribution of movement across frequencies over horizons, especially during bubble burst periods. also suggests a time-dependent relationship prices with alternative index, mostly pronounced bubble. We discuss our results using GSV-based sentiment. remain robust confirm strong predictive power price movements time scales.