Title: Herding behavior in cryptocurrency markets,
Abstract: There are no solid arguments to sustain that digital currencies are the
future of online payments or the disruptive technology that some of its former
participants declared when used to face critiques. This paper aims to solve the
cryptocurrency puzzle from a behavioral finance perspective by finding the
parallelism between biases present in financial markets that could be applied
to cryptomarkets. Moreover, it is suggested that cryptocurrencies' prices are
driven by herding, hence this study test herding behavior under asymmetric and
symmetric conditions and the existence of different herding regimes by
employing the Markov-Switching approach.