Behavioural finance and cryptocurrencies

Antonis Ballis, Thanos Verousis*

*Corresponding author for this work

Research output: Contribution to journalReview articlepeer-review

Abstract

Purpose: The present study sets out to examine the empirical literature on the behavioural aspects of cryptocurrencies, showing the findings of related studies and discussing the various results. A systematic literature review of cryptocurrencies in behavioural finance seems to be timely and particularly important in terms of providing a guide for future research. Key topics include an extent review on the issue of herding behaviour amongst cryptocurrencies, momentum effects and overreaction, contagion effect, sentiment and uncertainty, along with studies related to investment decision-making, optimism bias, disposition, lottery and size effects. Design/methodology/approach: Systematic literature review. Findings: A systematic literature review of cryptocurrencies in behavioural finance seems to be timely and particularly important in terms of providing a guide for future research. Key topics include an extent review on the issue of herding behaviour amongst cryptocurrencies, momentum effects and overreaction, contagion effect, sentiment (investor's, market's) and uncertainty, along with studies related to investment decision-making, optimism bias, disposition, lottery and size effect. Originality/value: The authors' survey paper complements recent papers in the area by offering a systematic account on the influence of behavioural factors on cryptocurrencies. Further, this study's purpose is not just to index the relevant literature, but rather to showcase and pinpoint several research areas that have emerged in the field of behavioural cryptocurrency research. For all these reasons, a systematic literature review of cryptocurrencies in behavioural finance seems to be timely and particularly important.

Original languageEnglish
Pages (from-to)545-562
JournalReview of Behavioral Finance
Volume14
Issue number4
Early online date21 Jun 2022
DOIs
Publication statusPublished - 5 Sep 2022

Bibliographical note

Copyright © 2022, Emerald Publishing Limited. This author's accepted manuscript (AAM) is deposited under the CC BY-NC 4.0 licence. Any reuse is allowed in accordance with the terms outlined by the licence. To reuse the AAM for commercial purposes, permission should be sought by contacting permissions@emeraldinsight.com.

Keywords

  • Behavioural finance
  • Bitcoin
  • Cryptocurrencies
  • Herding
  • Momentum
  • Sentiment

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