Cryptocurrency and the Herd Behavior

Abstract

In the financial market, investors often do not consider the market environment, but only invest based on the investment behavior of others. This is commonly known as Herd behavior. The herd behavior not only takes part in traditional financial markets but also in cryptocurrency markets. This paper aims to build a model which is applicable in cryptocurrency markets. To research the herd behavior in cryptocurrency markets and the dynamic relationship between the investors and the value of cryptocurrency with the model.