Investor Sentiment Effects on Cryptocurrency Judgments

Since 2009, there has been a lot of debate over whether digital money can function as an alternative currency.Such digital currency is a currency in which monetary value is stored in electronic form according to a digital algorithm created by the issuer in advance.In some cases, digital currency is intended to be used instead of actual legal currency.In particular, many investors are psychologically aware of the double-sided phenomenon of great risk and great profit as an investment in digital currency investment, and the main psychological effect on investors in this situation is investor sentiment.In order to succeed in investing in digital currency, rational thinking that is not influenced by collective investment psychology is required.Therefore, this study conducted an empirical analysis to find out the effect of real estate investor sentiment on investment performance and reinvestment intention.Data collection in this study was conducted in a self-reported manner for 30 days from March 2, 2023 to April 1, 2023, targeting those who invested in digital currency at least twice.A total of 250 questionnaires were distributed and a total of 202responses verified.The survey analysis wasdone with SPSS 21.0 and AMOS 21.0 programs, and path analysis was conducted to proceed with the hypothesis verification of this paper, and the verification results are summarized as follows.First, as a result of analyzing the hypothesis that investment psychology factors (optimistic psychology, self-confidence, crowd psychology) of digital currency will affect investment performance, all factors such as optimistic psychology and self-confidence have a positive (+) effect on investment performance.Second, as a result of analyzing the hypothesis that in as a result of analyzing the hypothesis that investment performance in digital currency will affect investors' intention to reinvest in digital currency, investment performance has a positive (+) effect on reinvestment intention.In particular, this study has limitations, as it is a study using data that may have a risk of error in measurement data.Therefore, this study investigated how investor sentiment impacts investment performance and reinvestment intentions for digital currencies using Bitcoin as an exemplar.An online survey of 202 cryptocurrency investors examined three facets of sentimentoptimism, self-confidence, and crowd psychology.Path analysis revealed self-confidence exerted the strongest positive influence on performance.In turn, performance significantly predicted reinvestment intent.Although sentiment facets uniformly bolstered performance assessments, realizing the full potential of digital currencies necessitates mitigating biases and grounding decisions in objective indicators.Further inquiry into sentiment's nuanced, contextual impacts is warranted.