Herding in Cryptocurrencies: CSSD and CSAD Approaches

Abstract

This paper uses CSSD developed by Two sets of cryptocurrencies were considered, one containing the 34 largest cryptocurrencies by market capitalisation and the other containing 15 cryptocurrencies with market capitalisations under $200 million. Any cryptocurrencies launched after 21/09/2018 were excluded from the samples in the interests of consistency. Using CSSD, no herding was detected while with CSAD a weak herding effect was observed, though the results were not statistically significant. This paper has important implications for cryptocurrency investors, researchers, and policymakers.