We invite you to attend our first knowledge-sharing session of 2024. Mahnaz Paydarzarnaghi will present her research entitled “Herding Behaviors in Cryptocurrency Markets: The Influence of Social Media on Market Perceptions.”
Herding Behaviors in Cryptocurrency Markets: The Influence of Social Media on Market Perceptions
Presenter: Mahnaz Paydarzarnaghi
University of Texas at Arlington
Ph.D. Candidate
ABSTRACT. Social media has become a crucial platform for disseminating information, particularly in the financial sector, where user-generated content plays a significant role in shaping market perceptions. While previous studies have leveraged this content to assess public sentiment and predict market trends and asset valuations, the influence of herding behavior—non-informative social forces that impact opinion formation—has been largely overlooked. Our study addresses this gap by focusing on herding behavior within cryptocurrency markets, especially Bitcoin. We developed a conceptual model based on herding theory and the Emotion as Social Information (EASI) model, empirically testing it with data from a leading financial social media site between 2019 and 2021. Our findings reveal that herding behavior significantly affects users’ perceptions of market directions, particularly in volatile conditions. Intriguingly, our research also hints at unexpected interactions between market sentiment and emotional content. These insights enhance both theoretical and practical understanding of the role of the social media in financial markets, highlighting the complexities of online financial discussions. This research is particularly relevant for understanding how social media content influences financial decision-making in volatile markets.
Date: April 27, 2024 (Saturday)
Time: 12:00 PM EST (6:00 PM CET | 7:30 PM Tehran)
Zoom Link: Please click here.
Please contact events@irais.org if you have any questions.