Table 2 Description of Major Events Influencing Herding Behavior.
Panel A: Herding related to major event announcements during 2020 and 2021 | |||
|---|---|---|---|
Institution Announcement Date | Major event description | Herding Beginning Date | Herding Duration |
April 29, 2020 | Announcement of an FOMC statement related to COVID-19 | April 26, 2020 | 7 days |
June 10, 2020 | Another FOMC statement related to COVID-19 | June 11, 2020 | 2 days |
July 28, 2020 | MicroStrategy Incorporated announced its acquisition of 21,454 bitcoins as part of the strategy outlined during its second quarter 2020 financial results. | Aug 2, 2020 | 8 days |
July 29, 2020 | An extension of the temporary liquidity swap of the US dollar and FOMC statement by Federal Reserve | Aug 2, 2020 | 8 days |
Nov 5, 2020 | FOMC statement by Federal Reserve | Nov 4,2020 | 5 days |
Nov 13,2020 | Commercial bank Galaxy Digital Holdings, the largest institutional holder of Bitcoin directly involved in the crypto industry, has released financial results. Galaxy Digital Trading (" GDT ") achieved its best quarter in history in the third quarter. | Nov 19,2020 | 4 days |
Feb 8, 2021 | Tesla buys $1.5 billion in bitcoin, plans to accept it as payment. | Feb 8, 2021 | 10 days |
July 21, 2021 | Elon Musk said that he and his rocket company, SpaceX, hold bitcoin, a cryptocurrency he generally supports. Elon Musk and Jack Dorsey discussed bitcoin with each other at ‘The B Word’ conference about the cryptocurrency. | July 11, 2021 | 18 days |
Panel B: Herding related to FOMC meeting announcements during 2022 and 2023 | ||||
|---|---|---|---|---|
FOMC meeting date | Rate change (bps) | Federal funds rate range | Herding beginning date | Herding duration |
March 22, 2023 | +25 | 4.75% to 5.00% | March 20, 2023 | 12 days |
Feb 1, 2023 | +25 | 4.50% to 4.75% | No herding observed | No herding observed |
Dec 14, 2022 | +50 | 4.25% to 4.50% | Dec 1, 2022 | 14 days |
Nov 2,2022 | +75 | 3.75% to 4.00% | Oct 30,2022 | 3 days |
Sep 21,2022 | +75 | 3.00% to 3.25% | Oct 12,2022 | 4 days |
July 27,2022 | +75 | 2.25% to 2.50% | July 24,2022 | 18 days |
June 16, 2022 | +75 | 1.50% to 1.75% | June 16, 2022 | 13 days |
May 5, 2022 | +50 | 0.75% to 1.00% | May 19,2022 | 10 days |
March 17, 2022 | +25 | 0.25% to 0.50% | No herding observed | No herding observed |
