Herding in the cryptocurrency market: CSSD and CSAD approaches

Vidal-Tomás, David; Ibáñez, Ana M.; Viñas, José Emilio Farinós

doi:10.1016/j.frl.2018.09.008

Cited by 170 publications

(99 citation statements)

References 28 publications

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“…It can be argued that investors do not follow the market consensus when prices are falling. This is in contrast to findings by Vidal-Tomás et al. (2019) .…”

Section: Empirical Findings and Economic Implicationscontrasting

confidence: 99%

“…Results present that herding is more intense during bull markets in comparison to bear markets. This abides by the findings of Vidal-Tomas et al. (2019) .…”

Section: Studies Revealing Herding Behaviour In Digital Currency Marksupporting

confidence: 78%

“…Such evidence can be found at the studies of: Bouri et al. (2019) , Stavroyiannis and Babalos (2019) , and Vidal-Tomas et al. (2019) .…”

Section: Studies Revealing Herding Behaviour In Digital Currency Markmentioning

confidence: 60%

“…When it comes to Vidal-Tomas et al. (2019) , they investigate herding behaviour related to an equally-weighted market portfolio.…”

Section: Studies Revealing Herding Behaviour In Digital Currency Markmentioning

confidence: 99%

“…In an overall sense, there is that Bitcoin remains among the most influential cryptocurrencies though the level of this dominance and the periods during which this exerts herding effects is not unanimous across studies. Most relevant papers indicate that herding is stronger during bull markets ( Kallinterakis and Wang, 2019 ; Stavroyiannis and Babalos, 2019 ) but there are also fewer studies that support higher herding intensity during bear markets ( Vidal-Tomas et al., 2019 ). The periods of high herding influences vary substantially as concerns their duration.…”

Section: Studies Revealing Herding Behaviour In Digital Currency Markmentioning

confidence: 99%

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Herding behaviour in digital currency markets: An integrated survey and empirical estimation

Kyriazis

2020

Heliyon

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This paper reviews the empirical literature on the highly popular phenomenon of herding behaviour in the markets of digital currencies. Furthermore, a comparison takes place with outcomes from earlier studies about traditional financial assets. Moreover, we empirically investigate herding behaviour of 240 cryptocurrencies during bull and bear markets. The present survey suggests that empirical findings about whether herding phenomena have made a significant appearance or not in cryptocurrency markets are split. The Cross-sectional absolute deviations (CSAD) and Cross-sectional standard deviations (CSSD) approaches for measuring herding tendencies are found to be the most popular. Different behaviour is detected in bull periods compared to bear markets. Nevertheless, evidence from primary studies indicates that herding is stronger during extreme situations rather than in normal conditions. However, our empirical estimations reveal that herding behaviour is evident only in bull markets. These findings cast light on and provide a roadmap for investment decisions with modern forms of liquidity.

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“…It can be argued that investors do not follow the market consensus when prices are falling. This is in contrast to findings by Vidal-Tomás et al. (2019) .…”

Section: Empirical Findings and Economic Implicationscontrasting

confidence: 99%

“…Results present that herding is more intense during bull markets in comparison to bear markets. This abides by the findings of Vidal-Tomas et al. (2019) .…”

Section: Studies Revealing Herding Behaviour In Digital Currency Marksupporting

confidence: 78%

“…Such evidence can be found at the studies of: Bouri et al. (2019) , Stavroyiannis and Babalos (2019) , and Vidal-Tomas et al. (2019) .…”

Section: Studies Revealing Herding Behaviour In Digital Currency Markmentioning

confidence: 60%

“…When it comes to Vidal-Tomas et al. (2019) , they investigate herding behaviour related to an equally-weighted market portfolio.…”

Section: Studies Revealing Herding Behaviour In Digital Currency Markmentioning

confidence: 99%

Section: Studies Revealing Herding Behaviour In Digital Currency Markmentioning

confidence: 99%

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Herding behaviour in digital currency markets: An integrated survey and empirical estimation

Kyriazis

2020

Heliyon

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Does Herding Behaviour Among Traders Increase During Covid 19 Pandemic? Evidence from the Cryptocurrency Market

Susana¹,

Kavisanmathi²,

Sreejith³

2020

IFIP Advances in Information and Communication Technology

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Cryptocurrencies are digital currencies and trading these currencies have gained huge momentum in recent years. The sophisticated features, complexities on regulatory framework, and high volatility of Cryptocurrencies would pose trading challenges to new investors and/or investors with limited knowledge. Investors generally are influenced by fund managers, financial analysts or other investors who are considered as well informed and highly knowledgeable peers. Investors mimic their behaviour to perform trading activities and such behaviour is termed as Herding. Covid 19 pandemic triggered severe uncertainties in the cryptocurrencies market and has led to wide fluctuations in prices causing severe volatility and market crashes. This paper aims to examine the herding behaviour in cryptocurrency market during the pre Covid 19 and Covid 19 pandemic period using the Cross-Sectional Standard Deviation (CSSD) approach. The findings of the paper reveal that herding was evident among all the ten crypto-currencies in normal market conditions of the entire sample period but not during market upswing or downswing. However, the herding behaviour was present in the cryptocurrencies Litecoin, Cardano and Dash during the Covid 19 pandemic period in all market conditions.

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Understanding Drivers of Boom and Bust in Cryptocurrency Markets

Yagli,

Haykir

2024

Springer Proceedings in Business and Economics

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Herding in the cryptocurrency market: CSSD and CSAD approaches

Cited by 170 publications

References 28 publications

Herding behaviour in digital currency markets: An integrated survey and empirical estimation

Herding behaviour in digital currency markets: An integrated survey and empirical estimation

Does Herding Behaviour Among Traders Increase During Covid 19 Pandemic? Evidence from the Cryptocurrency Market

Understanding Drivers of Boom and Bust in Cryptocurrency Markets

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