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#Trending: How does ‘Herd Behavior’ Shape Cryptocurrency Investing?
June 1, 2026
Using AI large language models and discussions from Reddit communities, Minwoo Song, doctoral lecturer in the Department of Finance, Information Systems, and Economics along with his CUNY colleague Seungho Baek analyzed the impact of trending behavior on the cryptocurrency market. Their findings appear in a new paper on cryptocurrency investing, “Herd Instinct in the Digital Currency Markets,” in Algorithmic Finance.
Song and Baek developed a new measure called the “herd behavior index” to track how strongly digital currency investors move together in response to market sentiment and influential voices—very strongly, it turns out. The study found that the index helps explain changes in cryptocurrency prices and can also predict future digital currency returns over time. As with the stock market, investor psychology and collective behavior continue to be important factors shaping cryptocurrency market performance.