Frans, Michelle Nilam
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Economic Behavioral Anomalies In Cryptocurrency Transactions During The Covid-19 Pandemic Frans, Michelle Nilam
Social Science Studies Vol. 4 No. 4 (2024): Issue: July
Publisher : Profesional Muda Cendekia Publishing

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.47153/sss44.10832024

Abstract

The COVID-19 pandemic has had a significant impact on various aspects of life, including financial markets. The cryptocurrency market, already renowned for its volatility, experienced a surge in activity and significant changes in investor behavior during this period. This research aims to analyze various economic behavioral anomalies that emerged in cryptocurrency transactions during the COVID-19 pandemic. This research uses a literature study method to identify several dominant behavioral anomalies, such as FOMO (Fear of Missing Out), Herding Behavior, Noise Trading, Overconfidence, and Anchoring Bias. These behavioral anomalies trigger extreme market volatility, asset bubbles, and financial losses for investors. This research highlights the importance of investor education, market regulation, and technology development to minimize the impact of behavioral anomalies and protect investors in the cryptocurrency market.