Volume 30, Issue 2 (summer 2025)                   JEPR 2025, 30(2): 0-0 | Back to browse issues page

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Sharifi S, Mazyaki A, Taleblou R. (2025). Empirical Analysis of Herd Behavior in the Cryptocurrency Market: Evidence from COVID-19 and Social Media Influencers' Messages. JEPR. 30(2),
URL: http://eprj.ir/article-1-2399-en.html
Empirical Analysis of Herd Behavior in the Cryptocurrency Market: Evidence from COVID-19 and Social Media Influencers' Messages
Sadaf Sharifi1 , Ali Mazyaki *2 , Reza Taleblou3
1- Master of Science from Economics Department in Allameh Tabataba'i University (ATU), Tehran, Iran
2- , mazyaki@atu.ac.ir
3- Associate Professor of Economics Department in Allameh Tabataba'i University (ATU), Tehran, Iran
Abstract:   (11 Views)
The role of social media influencers in the cryptocurrency market has sparked considerable discussion, particularly regarding their potential to amplify herd behavior in these markets. This study uses daily data from October 2019 to December 2022 to investigate whether factors such as influencers' messages, crypto-related news from the Federal Reserve, and COVID-19 case volumes influence herd behavior. The results reveal that herding behavior is present in the cryptocurrency market; however, the primary driver of this behavior is the spread of the COVID-19 pandemic. In terms of social media influencers’ messages, while daily fluctuations in these messages may influence herding behavior, this effect is not consistent across all periods. Our analysis shows that the influence of these messages is observed during market booms, but their impact during recession periods is not significant. These minimal effects, combined with issues of endogeneity, suggest that managing herding behavior in cryptocurrencies requires more in-depth research and careful consideration of the impact of messages from influencers.
Keywords: cryptocurrency, herding behavior, cross-sectional absolute deviation, capital asset pricing model.
     
Type of Study: Research | Subject: financial economics
Received: Dec 29 2025 | Accepted: Sep 01 2025 | ePublished: Sep 01 2025
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