An Investigation of Cryptocurrencies: Behavior Finance Perspective
Haojun Huang · Advances in economics, business and management research/Advances in Economics, Business and Management Research · 2022
The cryptocurrency market has ignited heated debates since its large fluctuation during 2013.This project first discusses a brief connection in certain representative cryptocurrency assets, with certain properties raising from the fields of behavior finance.Then I study the link between behaviors in cryptocurrency market with these properties using event study analysis.In order to proxy such behaviors, I extract confidence and uncertainty index which is a proxy of fully rational measurement and any deviations would imply the space of behavior finance theories.I discuss how such measurements could explain various individuals' reactions to cryptocurrencies both quantitatively and qualitatively.