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Behavioural finance and cryptocurrencies

Antonis Ballis (Aston Business School, Aston University, Birmingham, UK)
Thanos Verousis (Essex Business School, University of Essex, Colchester, UK)

Review of Behavioral Finance

ISSN: 1940-5979

Article publication date: 21 June 2022

Issue publication date: 5 September 2022

1867

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.

Keywords

Citation

Ballis, A. and Verousis, T. (2022), "Behavioural finance and cryptocurrencies", Review of Behavioral Finance, Vol. 14 No. 4, pp. 545-562. https://doi.org/10.1108/RBF-11-2021-0256

Publisher

:

Emerald Publishing Limited

Copyright © 2022, Emerald Publishing Limited

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