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Speculative bubbles and herding in cryptocurrencies
This study investigates speculative bubbles in the cryptocurrency market and factors affecting bubbles during the COVID-19 pandemic. Our results indicate that each cryptocurrency covered in the study presented bubbles. Moreover, we found that explosive behavior in one currency leads to explosivity i...
Autores principales: | , |
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Formato: | Online Artículo Texto |
Lenguaje: | English |
Publicado: |
Springer Berlin Heidelberg
2022
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Materias: | |
Acceso en línea: | https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9396602/ https://www.ncbi.nlm.nih.gov/pubmed/36034680 http://dx.doi.org/10.1186/s40854-022-00383-0 |
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author | Haykir, Ozkan Yagli, Ibrahim |
author_facet | Haykir, Ozkan Yagli, Ibrahim |
author_sort | Haykir, Ozkan |
collection | PubMed |
description | This study investigates speculative bubbles in the cryptocurrency market and factors affecting bubbles during the COVID-19 pandemic. Our results indicate that each cryptocurrency covered in the study presented bubbles. Moreover, we found that explosive behavior in one currency leads to explosivity in other cryptocurrencies. During the pandemic, herd behavior was evident among investors; however, this diminishes during bubbles, indicating that bubbles are not explained by herd behavior. Regarding cryptocurrency and market-specific factors, we found that Google Trends and volume are positively associated with predicting speculative bubbles in time-series and panel probit regressions. Hence, investors should exercise caution when investing in cryptocurrencies and follow both crypto currency and market-related factors to estimate bubbles. Alternative liquidity, volatility, and Google Trends measures are used for robustness analysis and yield similar results. Overall, our results suggest that bubble behavior is common in the cryptocurrency market, contradicting the efficient market hypothesis. |
format | Online Article Text |
id | pubmed-9396602 |
institution | National Center for Biotechnology Information |
language | English |
publishDate | 2022 |
publisher | Springer Berlin Heidelberg |
record_format | MEDLINE/PubMed |
spelling | pubmed-93966022022-08-23 Speculative bubbles and herding in cryptocurrencies Haykir, Ozkan Yagli, Ibrahim Financ Innov Research This study investigates speculative bubbles in the cryptocurrency market and factors affecting bubbles during the COVID-19 pandemic. Our results indicate that each cryptocurrency covered in the study presented bubbles. Moreover, we found that explosive behavior in one currency leads to explosivity in other cryptocurrencies. During the pandemic, herd behavior was evident among investors; however, this diminishes during bubbles, indicating that bubbles are not explained by herd behavior. Regarding cryptocurrency and market-specific factors, we found that Google Trends and volume are positively associated with predicting speculative bubbles in time-series and panel probit regressions. Hence, investors should exercise caution when investing in cryptocurrencies and follow both crypto currency and market-related factors to estimate bubbles. Alternative liquidity, volatility, and Google Trends measures are used for robustness analysis and yield similar results. Overall, our results suggest that bubble behavior is common in the cryptocurrency market, contradicting the efficient market hypothesis. Springer Berlin Heidelberg 2022-08-23 2022 /pmc/articles/PMC9396602/ /pubmed/36034680 http://dx.doi.org/10.1186/s40854-022-00383-0 Text en © The Author(s) 2022 https://creativecommons.org/licenses/by/4.0/Open AccessThis article is licensed under a Creative Commons Attribution 4.0 International License, which permits use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons licence, and indicate if changes were made. The images or other third party material in this article are included in the article's Creative Commons licence, unless indicated otherwise in a credit line to the material. If material is not included in the article's Creative Commons licence and your intended use is not permitted by statutory regulation or exceeds the permitted use, you will need to obtain permission directly from the copyright holder. To view a copy of this licence, visit http://creativecommons.org/licenses/by/4.0/ (https://creativecommons.org/licenses/by/4.0/) . |
spellingShingle | Research Haykir, Ozkan Yagli, Ibrahim Speculative bubbles and herding in cryptocurrencies |
title | Speculative bubbles and herding in cryptocurrencies |
title_full | Speculative bubbles and herding in cryptocurrencies |
title_fullStr | Speculative bubbles and herding in cryptocurrencies |
title_full_unstemmed | Speculative bubbles and herding in cryptocurrencies |
title_short | Speculative bubbles and herding in cryptocurrencies |
title_sort | speculative bubbles and herding in cryptocurrencies |
topic | Research |
url | https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9396602/ https://www.ncbi.nlm.nih.gov/pubmed/36034680 http://dx.doi.org/10.1186/s40854-022-00383-0 |
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