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Journal : Cakrawala : Management Science Journal

Impact of Behavioral Bias, Price Volatility, and Market Capitalization on Cryptocurrency Purchase Decisions in Indonesia Putra, Bagja Rahma; Lestari, Fitrina; Kharisma, Kharisma
CAKRAWALA : Management Science Journal Vol. 2 No. 2 (2025): Cakrawala: Management Science Journal - September
Publisher : Yayasan Edukasi Cakrawala Nusantara

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.63541/8ehdka53

Abstract

This study investigates how market capitalization, price volatility, and behavioral biases affect decisions to buy cryptocurrencies. Because of its decentralized structure and extreme volatility, the cryptocurrency market frequently affects investment choices through psychological elements, including loss aversion, overconfidence, and herd mentality. This study uses a quantitative methodology to analyze data from the nine most traded cryptocurrencies using independent t-tests, multiple linear regression, and simple linear regression. According to the study's findings, decisions to buy cryptocurrencies are significantly positively influenced by herd behavior and overconfidence, as shown by high volatility, but not significantly by loss aversion. Furthermore, it has been demonstrated that price volatility significantly affects herd behavior, meaning that investors are influenced to follow the majority lead when prices fluctuate significantly. However, the degree of herd behavior is not affected by market capitalization, suggesting that psychological elements like herd behavior are more impacted by general market conditions than by market capitalization size. These results highlight how crucial it is to comprehend the psychological aspects of cryptocurrency market decision-making, since doing so can offer a better understanding of investor behavior and the workings of this extremely unpredictable market.
Co-Authors Angesti, Annisa Nursita Anjani, Meri Anwar, Muhammad Khoerul Aprilia, Raisa Ar-Razy Muhammad Arif Ashari Arif Himawan, Arif Asri asri assajjad, umar Auri, Tiara Ayu Ciptaningsih, Sri AZIZ, FIKRI Berlina, Laila Indah Cahayana, Nika Nur Cigmawanti Septianingsih, Cindy Darmanto Darmanto Darmanto, Darmanto Deking, Sheva Agnes Dwijayanti, Irmma Dwiyana, Parlin Efendi, Raimon Eka Wahyudi Erlina Erlina Fadillah, Cindyo Daffa Fadliyana Ekawaty Faradilah, Azmi Nur Fauziah, Siti Latifah Ferdiansyah, Muhamad Ricky Fikri, M. Hisam Fitrina Lestari Gunawan Gunawan HANDAYANI, NUR RITA Hasibuan, Ahmad Fauzul Hakim Herdiyani, Ricka Herni, Indah Putri Hesri Mintawati Hidayah, Fahrian Akbar Ichsan Ichsan Indra Pratiwi, Indra Intan Deanida Pratiwi Isyti’aroh, Isyti’aroh Jamaludin, Syarif Kalfajrin , Kurniaji Kaprawi, Moch Aripin Khoerunnisa, Nenden Kuswanto, Riyan Terna Lestari Lestari Lia Ardiansari Liliandriani, Andi Lisa Chandrasari Desianti Ludfi Arya Wardana Luri Mekeama Martanto . Maulana I, Farhan Maulita Lutfiani Monikawatie, Viranie Dwi Muhammad Muslim, Muhammad Muhammad Reza Muthmainah, Gusti Ayu Nur NANI HANIFAH Nazlah N, Hanan NURUL AZIZAH Pradasari, Novi Indah Pradesa, Kohar Prikhatina, Ratih Agustin Prima, Wahyu Puji Winar Cahyo Puspita, Reni Putra, Bagja Rahma Ramadhan, M. Iqbal Reghita , Lola Riska Amalya Nasution Riyan Mirdan Faris Rizqi Lahitani, Alfirna Rizqia Lestika Atimi . Rosa, Amalia Fadila Ruhibnur, Refid Rustiarni, Rustiarni S, Meylinda Halimatus Salsabila, Dhea Marliana Sari, Syafira Permata Sintiya, Siska Siti Nurhalimah Siti Romlah Sukmadi, Dendi Sunarto Sunarto Syahbana, Wildan Syifa N, Neng Tasya Aldawiyah , Syarifah Tri Andini, Febri Ulfah Hidayati Ulfi Saidata Aesyi Vivianlai, Stevani Wardoyo, Muhammad Asrori Indra