Navigating Cryptocurrency Investments among Gen Z in Indonesia: The Role of Social Media Influencer, FOMO, and Financial Literacy

Abstract

This study examines the influence of social media influencers (SMIs), fear of missing out (FOMO), and financial literacy on cryptocurrency investment decisions among Generation Z in Indonesia. A quantitative approach was employed using Partial Least Squares Structural Equation Modeling (PLS-SEM). Data were collected through an online questionnaire distributed to Gen Z respondents, using purposive sampling and yielded 366 valid responses. The findings show that SMI primarily shape early interest by disseminating information, while FOMO dominates Gen Z’s investment behavior, driving impulsive decisions. As a moderator, FOMO negatively affects investment decisions, with fear outweighing influencer recommendations. Financial literacy emerges as the strongest predictor, fostering rational evaluation and reducing reliance on external cues. However, it does not strengthen SMI’s effect, underscoring the interplay of emotional, social, and cognitive factors in Gen Z’s cryptocurrency investments. This study provides new insights by jointly examining SMI, FOMO, and financial literacy on cryptocurrency investment decisions among Gen Z in Indonesia, an underexplored contextual and interactional perspective.