This thesis delves into the phenomenon of herding behavior within the cryptocurrency market from 2017 to 2022, with a particular emphasis on the COVID-19 pandemic's influence. Utilizing a quantitative approach and analyzing data from eight leading cryptocurrencies and the CCi30 index, the study sought to determine if the pandemic led to an increase in herding behavior among investors. Contrary to expectations, the research concluded that herding behavior was not prevalent in the period before the pandemic nor during the pandemic itself. This conclusion challenges existing assumptions about investor behavior in times of crisis, suggesting that cryptocurrency market's investors may rely more on individual analysis and strategies than on collective market movements. Therefore, the findings of this research stand in contrast to the prevailing conclusions drawn from previous studies, highlighting the nuanced nature of investor sentiment and decision-making within the cryptocurrency market. This insight adds a significant dimension to the understanding of market psychology, especially under extraordinary circumstances, providing valuable information for policymakers, investors, and the broader finance community.
Date of Award | 17 Jul 2024 |
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Original language | English |
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Awarding Institution | - Universidade Católica Portuguesa
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Supervisor | Mário Ferreira (Supervisor) |
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- Cryptocurrency
- Herding behavior
- Covid-19
- Behavioral finance
- Investor psychology
Herding behavior in the cryptocurrency market: the impact of covid-19
Cavalcante, L. S. A. (Student). 17 Jul 2024
Student thesis: Master's Thesis