Designing a Conceptual Model of the Impact of Signals Embedded in Fake News on the Cryptocurrency Market
Keywords:
conceptual model, signal, fake news, market, cryptocurrencyAbstract
This study aimed to design a conceptual model of the impact of signals embedded in fake news on the cryptocurrency market. The research method was qualitative and was conducted using the Delphi technique in five rounds with the participation of five experts in the fields of media and business. The interview data were coded and analyzed using MAXQDA software, and seven main concepts were ultimately extracted: the legal status of cryptocurrency, cryptocurrency management strategies, factors affecting the cryptocurrency market, the type of impact of fake news on cryptocurrency, understanding the effects of signals in fake news, methods for detecting signals in fake news, and strategies for managing fake news, signals, and the cryptocurrency market. The findings showed that fake news, whether explicit or implicit, can lead to severe price fluctuations, reduced public trust, the growth of informal markets, and intensified instability. Accordingly, improving media literacy, formulating transparent regulations, using advanced technologies, and strengthening cooperation between public and private institutions are proposed as key strategies for managing these challenges. The results of this study can help policymakers and cryptocurrency market actors in Iran reduce the destructive effects of fake news through a comprehensive approach and benefit from the economic opportunities offered by this technology.
References
[1] M. Bhatnagar, S. Taneja, and R. Rupeika-Apoga, "Demystifying the Effect of the News (Shocks) on Crypto Market Volatility," Journal of Risk and Financial Management, vol. 16, no. 2, p. 136, 2023, doi: 10.3390/jrfm16020136.
[2] A. Ajeesh, L. Prakash, M. A. Moni, and V. Sreeraj, "Beyond the Hype: Evaluating the Real Impact of News on Cryptocurrency Market Volatility," Commerce & Business Researcher, vol. 15, no. 1, pp. 13-40, 2023, doi: 10.59640/cbr.v15i1.13-40.
[3] L. Rognone, S. Hyde, and S. S. Zhang, "News Sentiment in the Cryptocurrency Market: An Empirical Comparison with Forex," International Review of Financial Analysis, vol. 69, p. 101462, 2020.
[4] E. Koutrouli, P. Manousopoulos, J. Theal, and L. Tresso, "Crypto asset markets vs. financial markets: Event identification, latest insights and analyses," Applied Mathematics, vol. 5, no. 2, p. 36, 2025, doi: 10.3390/appliedmath5020036.
[5] D. B. Vukovic, M. Frömmel, S. A. Vigne, and V. Zinovev, "Spillovers between cryptocurrencies and financial markets in a global framework," Journal of International Money and Finance, vol. 150, p. 103235, 2025, doi: 10.1016/j.jimonfin.2024.103235.
[6] C. H. Chen and C. M. Hafner, "Sentiment-Induced Bubbles in the Cryptocurrency Market," Journal of Risk and Financial Management, vol. 12, no. 2, p. 53, 2019, doi: 10.3390/jrfm12020053.
[7] H. A. AlNemer, B. Hkiri, and M. A. Khan, "Time-Varying Nexus Between Investor Sentiment and Cryptocurrency Market: New Insights From a Wavelet Coherence Framework," Journal of Risk and Financial Management, vol. 14, no. 6, p. 275, 2021, doi: 10.3390/jrfm14060275.
[8] S. Bogdan, N. Brmalj, and E. Mujacevic, "Impact of liquidity and investor sentiment on herd behavior in cryptocurrency market," International Journal of Financial Studies, vol. 11, no. 3, p. 97, 2023.
[9] V. Bakir and A. McStay, "Fake News and the Economy of Emotions," (in English), Digital Journalism, 2018. [Online]. Available: https://www.semanticscholar.org/paper/e546418c674b9c82d3f03da674d2c614541b9e15.
[10] M. Skwarek, "Why investors behave irrationally in cryptocurrency and emerging stock markets," SAGE Open, vol. 15, no. 3, p. 21582440251361212, 2025.
[11] M. Farzulla, "The Extremity Premium: Sentiment Regimes and Adverse Selection in Cryptocurrency Markets," 2026, doi: 10.48550/arxiv.2602.07018.
[12] S. S. Laryea, K. A. Ababio, J. C. Mba, and M. Booyens, "Maximising investors’ wealth in cryptocurrency market: A behavioural perspective," Cogent Economics & Finance, vol. 13, no. 1, p. 2468887, 2025.
[13] E. J. A. Nieto Rodriguez, "The Effects of COVID-19 and the Increasing Relationship between Individual Investor Sentiment, Cryptocurrencies, and the U.S. Market," Academy of Economics and Finance Journal, vol. 14, 2024.
[14] H. Soltani, J. Taleb, and M. Boujelbene Abbes, "Spillover effects between stock markets, cryptocurrency, and investor sentiment during COVID-19," European Journal of Management and Business Economics, vol. 34, no. 1, pp. 23-46, 2025.
[15] R. Sakariyahu, R. Lawal, R. Adigun, A. Paterson, and S. Johan, "One Crash, Too Many: Global Uncertainty, Sentiment Factors and Cryptocurrency Market," Journal of International Financial Markets, Institutions and Money, vol. 94, 2024, doi: 10.1016/j.intfin.2024.102028.
[16] E. Jones, T. Matsui, and W. Knottenbelt, "Stablecoins as Dry Powder: A Copula-Based Risk Analysis of Cryptocurrency Markets," 2026, doi: 10.48550/arxiv.2603.23480.
[17] J. Roberts, "Sentiment Analysis and Cryptocurrency Price Prediction: A Deep Learning Approach," Journal of Financial Markets, vol. 37, pp. 85-101, 2018.
Downloads
Published
Submitted
Revised
Accepted
Issue
Section
License
Copyright (c) 2025 Hamideh Tabatabaei (Author); Seyed Mahmoud Reza Mortazavi; Shadi Zabet (Author)
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
