Ann Oper Res 2021 Jan 13:1-18. Epub 2021 Jan 13.
Texas A&M University - Corpus Christi, Corpus Christi, TX 78412 USA.
This paper examines the extent to which herding and feedback trading behaviors drive price dynamics across nine major cryptocurrencies. Using sample price data from bitcoin, ethereum, XRP, bitcoin cash, EOS, litecoin, stellar, cardano and IOTA, respectively, we document heterogeneity in the types of feedback trading strategies investors utilize across markets. Whereas some cryptocurrency markets show evidence of herding, or, 'trend chasing', behaviors, in other markets we show evidence of contrarian-type behaviors. Read More