Cryptocurrency as a Slice in Investment Portfolio: Identifying Critical Antecedents and Building Taxonomy for Emerging Economy

Sridhar Manohar ()
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Sridhar Manohar: Chitkara University

Asia-Pacific Financial Markets, 2025, vol. 32, issue 4, No 7, 1357-1382

Abstract: Abstract Identifying investment opportunities with high returns is crucial for individuals seeking to generate wealth and accumulate assets. The cryptocurrency market exhibits high volatility and significant price variations compared to the stock market, suggesting that price movements may be influenced by additional factors. Identifying and categorizing these factors helps in making precise forecasts about the increase in investors’ asset. Thus, this study aims to investigate the primary elements influencing cryptocurrency’s’ market performance. The qualitative approach included a literature review, sentimental analysis and in-depth interviews with investors. Non-probability sampling techniques were adopted in identifying the prospective respondents for in-depth interviews. Additionally, the bibliometric analysis helped in the collection of appropriate literature for a systematic literature review. A taxonomy was built, combining all codes received with the help of experts. Distinct determinants were identified and categorized as internal and external factors, which were then further subdivided. Internal variables include fear of missing out, money accumulation, flexibility, and understanding of patterns. External factors such as technological progress, community involvement, airdrops/roadmap, news/speculations, and government laws also have a role. Understanding the determinants helps investors and traders gain appropriate knowledge on investments and profit-making, thereby yielding wealth that could provide financial freedom and a better lifestyle. This study is novel because exploring, understanding, and predicting the cryptocurrency market is one of the latest and most widely spoken topics among researchers in the finance domain. Earlier studies have not emphasized empirically the concepts, strategies and factors impacting price fluctuations and investment behavior in the crypto market.

Keywords: Cryptocurrency; Barriers; Facilitators; Traders; Investors; Portfolio management; Taxonomy; Emerging economy; Digital currency (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s10690-024-09490-7

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