Why is Al-Khwarizmi investment (based on quantitative criteria) better than herd behavior?!!!
The decisions of investors in cryptocurrencies are influenced by collective psychological factors studied within the framework of behavioral economics and herd theory.
Data shows that 78% of traders make investment decisions based on:
1. Social Proof
2. Recency Bias
3. Emotional Response to Fear/Greed
Studies confirm that these socio-neuro phenomena cause:
- Price distortions reaching 320% above the fundamental value
- A correlation coefficient of +0.92 between social media activity and market volatility