01.05.2025
| DSC Seed Grant |
The DSC Supports a Data Science Project Analysing the Determinants of Cryptocurrency Trends
The research project focuses on identifying the determinants of trend patterns in the cryptocurrency market. The main goal is to examine whether investor behaviour is driven by rational decision-making or behavioural biases.
Momentum is one of the most prevalent concepts in capital market research. The term describes the phenomenon that assets which performed well (or poorly) in the past, tend to continue to do so in the future. Explanations for the sources of momentum, however, remain diverse and include both, economic factors and behavioural biases.
Moreover, momentum captures only a narrow aspect of the broader phenomenon of “trend” on cryptocurrency markets. Several studies have demonstrated that combining different trend signals into a comprehensive measurement leads to significantly more accurate results than simple momentum. The focus of the funded research project is to investigate whether the drivers of trend predictability in cryptocurrency markets stem from behavioural biases (e.g. limited attention or underreaction) or economic fundamentals (e.g. risk premia or liquidity effects).
In addition, the project aims to adapt and further develop existing methodologies for understanding and identifying the sources of momentum in the specific context of cryptocurrency markets. Next to traditional momentum measures, the so-called CTREND indicator will also be examined. CTREND is a novel machine-learning based trend factor that aggregates data from a wide range of technical indicators into a single, comprehensive measure of trend.
To enrich the empirical and theoretical foundation of the project, Emmanuel Opoku is going to travel to Concordia University in Montreal (Canada). There, he will collaborate with Professor Thomas Walker, a leading expert in the field of sustainable finance research. The cooperation aims to promote international academic exchange as well as further expand the behavioural finance perspective of the project.
Funding recipients:
Dr. Gerrit Liedtke (Faculty 07 – Business Economics)
Emmanuel Opoku (Faculty 07 – Business Economics)
Thomas J. Walker (Concordia University – Montreal, Canada)
Funding period:
May 2025 - January 2026
Updated by: Svenja Goers
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01.05.2025 | DSC Seed Grant
The DSC Supports a Data Science Project Analysing the Determinants of Cryptocurrency Trends
The research project focuses on identifying the determinants of trend patterns in the cryptocurrency market. The main goal is to examine whether investor behaviour is driven by rational decision-making or behavioural biases.
Momentum is one of the most prevalent concepts in capital market research. The term describes the phenomenon that assets which performed well (or poorly) in the past, tend to continue to do so in the future. Explanations for the sources of momentum, however, remain diverse and include both, economic factors and behavioural biases.
Moreover, momentum captures only a narrow aspect of the broader phenomenon of “trend” on cryptocurrency markets. Several studies have demonstrated that combining different trend signals into a comprehensive measurement leads to significantly more accurate results than simple momentum. The focus of the funded research project is to investigate whether the drivers of trend predictability in cryptocurrency markets stem from behavioural biases (e.g. limited attention or underreaction) or economic fundamentals (e.g. risk premia or liquidity effects).
In addition, the project aims to adapt and further develop existing methodologies for understanding and identifying the sources of momentum in the specific context of cryptocurrency markets. Next to traditional momentum measures, the so-called CTREND indicator will also be examined. CTREND is a novel machine-learning based trend factor that aggregates data from a wide range of technical indicators into a single, comprehensive measure of trend.
To enrich the empirical and theoretical foundation of the project, Emmanuel Opoku is going to travel to Concordia University in Montreal (Canada). There, he will collaborate with Professor Thomas Walker, a leading expert in the field of sustainable finance research. The cooperation aims to promote international academic exchange as well as further expand the behavioural finance perspective of the project.
Funding recipients:
Dr. Gerrit Liedtke (Faculty 07 – Business Economics)
Emmanuel Opoku (Faculty 07 – Business Economics)
Thomas J. Walker (Concordia University – Montreal, Canada)
Funding period:
May 2025 - January 2026
Author: Svenja Goers
If you have any questions regarding the DSC Seed Grant, feel free to contact me.
Dr. Lena Steinmann
DSC Coordinator
+49 (421) 218 - 63941
lena.steinmann@uni-bremen.de
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