FoMO in the Bitcoin market: Revisiting and factors

We revisit the "fear of missing out” (FoMO) effect of Bitcoin by observing asymmetric volatility dynamics and further investigate its driving factors. Using a longer sample period covering the COVID-19 pandemic, our results show evidence of positive asymmetric volatility behavior in the Bitcoin market, confirming the presence of the FoMO effect. This effect also exists in some other major cryptocurrencies. Further analysis indicates that the happiness index, the ratio of short-term to long-term Bitcoin trading volume, and the geopolitical risk index contribute positively to the FoMO, while the volatility index and the Twitter-based uncertainty index exert an opposite effect.

Dissecting returns of non-fungible tokens (NFTs): Evidence from CryptoPunks

We use transaction data on CryptoPunks to dissect the factors affecting the returns of non-fungible tokens (NFTs). Our results show that trading volume in the short period before a trader buys (sells) CryptoPunk relates negatively (positively) to the returns on NFTs, suggesting that when market trading volume is at a high level, NFT owners are better off on the sell side, and investors interested in NFTs should avoid joining the herd. Turnover of a token tends to harm its returns. Finally, both traders' willingness to purchase and trading experience have a positive impact on NFT returns within short-term investment horizons.

Effect of the Universal Health Coverage Healthcare System on Stock Returns During COVID-19: Evidence From Global Stock Indices.

The increased uncertainty caused by a sudden epidemic disease has had an impact on the global financial market. We aimed to assess the primary healthcare system of universal health coverage (UHC) during the coronavirus disease (COVID-19) pandemic and its relationship with the financial market. To this end, we employed the abnormal returns of 68 countries from January 2, 2019, to December 31, 2020, to test the impact of the COVID-19 outbreak on abnormal returns in the stock market and determine how a country's UHC changes the impact of a sudden pandemic on abnormal returns. Our findings show that the sudden onset of an epidemic disease results in unevenly distributed medical system resources, consequently diminishing the impact of UHC on abnormal returns.

The Effect of COVID-19 on Herding Behavior in Eastern European Stock Markets.

Unlike past health crises that were more localized, the highly contagious coronavirus disease 2019 (COVID-19) crisis is impacting the world to an unprecedented extent. This is the first study examining how and whether the COVID-19 pandemic affects herding behavior in the Eastern European stock markets. Using samples from the stock markets of Russia, Poland, the Czech Republic, Hungary, Croatia, and Slovenia from January 1, 2010 to March 10, 2021, we demonstrate that the COVID-19 pandemic has increased herding behavior in all the sample stock markets. Our results show that the COVID-19 crisis reinforces the impact of global market returns on herding behavior in these specific stock markets. We find that COVID-19 strengthens the spillover effect of regional herding on herding behavior. Thus, financial authorities should monitor investors in the stock market to avoid the increase in herding behavior as well as the reinforcement of the global market returns and regional return dispersion on herding during the period of pandemic.

Further Evidence of Herding Behavior in Cryptocurrency Markets During the COVID-19 Pandemic

This study investigates the herding behavior in the Singaporean cryptocurrency markets during the full crisis period, differentiates its presence before (pre-event) and after (post-event) the World Health Organization officially declared COVID-19 as a global pandemic on March 11, 2020. Discriminates its occurrence between up & down market conditions and further distinguishes the phenomenon between periods of low & high volatilities. Our results show that herding effect is present in but is contingent in a specific combination of market state and market condition, only during down markets in periods of high volatility (down market - high volatility) and up markets in periods of low volatility (up market - low volatility). Furthermore, results indicate an asymmetric herding effect and is robust in a market capitalization-weighted model.

The determinants of positive feedback trading behaviors in Bitcoin markets

ABSTRACT This study investigates the positive feedback trading behavior in Bitcoin markets and analyzes its potential determinants. Our results show significant evidence of positive feedback trading behaviors for Bitcoin and the infectious disease equity market volatility tracker index (EMVID) increases Bitcoin volatility. Combining rolling window estimations with regression analysis, we find that market uncertainty that is measured by EMVID, the distance between short- and long-term moving averages of Bitcoin's trading volumes, and Bitcoin prices exceeding their 21-day moving average are positively correlated with future positive feedback trading behaviors during the COVID-19 pandemic. Further, left-tailed risk contributes negatively to this behavioral anomaly.

The Social Network Volume of COVID-19 and Stock Market Response

This study applies volume of social network activity to examine whether positive or negative social network volume relating to coronavirus (COVID-19) can stimulate stock performance. It also examines whether a professional manager with abundant cash holdings can buffer against an outbreak of COVID-19. The empirical evidence indicates that social network volume can impact stock performance, and firms operated by a professional manager with abundant cash holdings can buffer against an outbreak of COVID-19. This study offers a different perspective on the effect of an epidemic on the economy and risk avoidance strategies regarding similar epidemics in the future.

Coronavirus disease outbreak and supply chain disruption: Evidence from Taiwanese firms in China.

This study applies an empirical analysis to examine whether supply chain disruption is caused by the outbreak of the coronavirus disease (COVID-19) that was first reported in Wuhan, China, on December 31, 2019. The study's findings indicate a link between the COVID-19 outbreak and the disruption of logistics and supply chains along with negative cumulative abnormal returns within Taiwanese firms manufacturing products in China and marketing them globally. This is the first study to examine the outbreak of the COVID-19 and the disruption of the supply chain and its effect on the stock market. The empirical results provide insights for business management in reconsidering their global supply chain strategies for the risk of disruption caused by similar epidemics occurs in the future.