Do clean and dirty cryptocurrency markets herd differently?

Boru Ren and Brian Lucey

Finance Research Letters, 2022, vol. 47, issue PB

Abstract: In this paper, we investigate the herding behaviour of two types of cryptocurrencies, referred to as ”black/dirty” and ”green/clean” based on their energy usage levels. Empirical results reveal that herding generally exists only in the dirty cryptocurrency market, and is more significant in down markets. Moreover, we find that clean cryptocurrencies do herd, but with dirty cryptocurrencies, when the two markets are both positive. Our findings are robust across value- and equal-weighted portfolios and provide valuable insights to investors and policy makers.

Keywords: Herding; Cryptocurrencies; Sustainable cryptocurrency; Bitcoin (search for similar items in EconPapers)
JEL-codes: G10 G12 G15 G40 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (21)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:47:y:2022:i:pb:s1544612322001076

DOI: 10.1016/j.frl.2022.102795

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