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Do Investors Think or Just Follow on Crypto Invesment Decisions Ivintia
EKONOMI DAN BISNIS DIGITAL Vol 5 No 1 (2026): jURNAL EKONOMI DAN BISNIS DIGITAL
Publisher : SMARTINDO

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.58765/ekobil.v5i1.474

Abstract

Cryptocurrency investment decisions have become a global phenomenon attracting the attention of academics and financial practitioners. This study conducts a comprehensive literature review to analyze whether cryptocurrency investors make decisions based on rational thinking or merely follow market trends. Through an analysis of retail investor behavior, cognitive biases, the herding effect, and other psychological factors, we find that cryptocurrency investment decisions are not entirely driven by rational considerations. Retail investors exhibit strong momentum trading patterns, influenced by market sentiment, the fear of missing out (FOMO), and herding behavior, particularly during market booms. However, the complexity of crypto market dynamics indicates that investors do not always blindly follow trends a segment of them does consider cryptocurrency fundamentals. These findings hold significant implications for market regulation, investor education, and the development of more rational investment strategies within the digital asset ecosystem. Future research needs to delve deeper into specific cognitive mechanisms, the role of social media, and the effectiveness of interventions aimed at improving the quality of crypto investment decision-making.