Psychological barriers in the cryptocurrency market
Luis Pacheco and
Review of Behavioral Finance, 2019, vol. 12, issue 2, 151-169
Purpose - The purpose of this paper is to study the existence of psychological barriers in cryptocurrencies. Design/methodology/approach - To detect psychological barriers, the authors perform a uniformity test, a barrier hump test, a barrier proximity test and conditional effects test to a sample comprised by the daily closing quotes of six of the most liquid cryptocurrencies. Findings - The results evidence the existence of psychological barriers in four of the cryptocurrencies under scrutiny, namely, Bitcoin, Dash, NEM and Ripple. Practical implications - The fact that the cryptocurrency market has a high share of unexperienced investors and presents several cases of psychological barriers is consistent with the hypothesis that that class of investors is particularly prone to the behavioral biases which cause psychological barriers. Originality/value - This paper studies, for the first time, the existence of psychological barriers in the market of cryptocurrencies.
Keywords: Market efficiency; Bitcoin; Psychological barriers; Cryptocurrencies; G14; G15; G41 (search for similar items in EconPapers)
References: Add references at CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
http://www.emeraldinsight.com/10.1108/RBF-03-2019- ... RePEc&WT.mc_id=RePEc (text/html)
Access to full text is restricted to subscribers
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eme:rbfpps:rbf-03-2019-0041
Ordering information: This journal article can be ordered from
Emerald Group Publishing, Howard House, Wagon Lane, Bingley, BD16 1WA, UK
http://emeraldgroupp ... /journals.htm?id=rbf
Access Statistics for this article
Review of Behavioral Finance is currently edited by Phil Holmes and Robert Hudson
More articles in Review of Behavioral Finance from Emerald Group Publishing
Bibliographic data for series maintained by Virginia Chapman ().