Do Cryptocurrencies Exhibit Herding Behavior? Evidence from CSSD and CSAD Approaches


  • Melinda Wang Scholar Launch
  • Abhishek Dev Faculty Advisor Scholar Launch
  • Qinyue Zhou Teaching Assistant Scholar Launch



cryptocurrency market, cryptocurrencies, irrationality, herding behavior


This paper investigates whether herding behavior is present in the rapidly growing cryptocurrency market. It analyzes herding behavior over a 4-year period by using the daily closing price data of 16 cryptocurrencies and CSSD and CSAD. The findings indicated that with CSSD, no herding was detected for the entire time period. However, for CSAD, a weak herding effect was observed but it was statistically insignificant. The evidence further revealed that the 8 cryptocurrencies with the lowest market capitalization, both CSSD and CSAD showed a higher chance of herding behavior. Similarly, in times of higher volatility, there was a higher chance of herding behavior. It was also found that there was no herding behavior during the start of COVID-19, the FTX bankruptcy, or Google Trends. This paper has important implications for cryptocurrency investors, especially retail investors who may invest more in smaller cryptocurrencies. They should be more cautious when approaching lower market map cryptocurrencies and during times of high market volatility to prevent greater financial loss.


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Author Biographies

Abhishek Dev, Faculty Advisor Scholar Launch

A doctoral student in Finance at Yale School of Management.

Qinyue Zhou, Teaching Assistant Scholar Launch

Economics graduate student at UMichigan. 

References or Bibliography

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Vidal-Tomás, D., Ibáñez, A. M., & Farinós, J. E. (2019). Herding in the cryptocurrency market: CSSD and CSAD approaches. Finance Research Letters, 30, 181-186.



How to Cite

Wang, M., Dev, A., & Zhou, Q. (2023). Do Cryptocurrencies Exhibit Herding Behavior? Evidence from CSSD and CSAD Approaches . Journal of Student Research, 12(4).



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