Investigating how FUD leads to fanaticism in cryptocurrency markets (powerful @iPollocn)

This article examines how FUD (Fear, Uncertainty and Doubt) can lead to mass obedience in the cryptocurrency market.

💎Theoretical basis:

Behavioral Finance Theory - Investors are affected by emotions and will produce group blind obedience.

efficient market hypothesis

💎Hypothesis:

During the COVID-19 pandemic, there has been clear herd behavior in the cryptocurrency market.

💎Main data:

Time series data of daily returns of 10 major cryptocurrencies.

💎Conclusion:

During the COVID-19 pandemic, there has been significant herd behavior in the cryptocurrency market.

Unfavorable news (FUD) will intensify investors' irrational behavior and lead to increased market volatility.

The effectiveness of cryptocurrency markets has decreased during the pandemic.

⭕️To put it bluntly, FUD sentiment has an effect on the crypto market. Investors must learn to observe and evaluate😄