Category Archives: investors

21/1/20: Investor Fear and Uncertainty in Cryptocurrencies

Our paper on behavioral biases in cryptocurrencies trading is now published by the Journal of Behavioral and Experimental Finance volume 25, 2020:

We cover investor sentiment effects on pricing processes of 10 largest (by market capitalization) crypto-currencies, showing direct but non-linear impact of herding and anchoring biases in investor behavior. We also show that these biases are themselves anchored to the specific trends/direction of price movements. Our results provide direct links between investors' sentiment toward:

  1. Overall risky assets investment markets,
  2. Cryptocurrencies investment markets, and
  3. Macroeconomic conditions,
and market price dynamics for crypto-assets. We also show direct evidence that both markets uncertainty and investor fear sentiment drive price processes for crypto-assets.