## 2 Literature Review
### Harding Behavior and Momentum Strategies  
Regarding herding behaviors, [PERSON], [PERSON], and [PERSON] [52] found that positive net institutional trading following past excessive intra-day stock returns can largely explain strong contemporaneous daily patterns. [PERSON] et al. [53] reported that herding behavior exhibits time-varying dynamic trading patterns that may be explained by overconfidence. Herding behaviors imply that momentum strategies are appropriate when herding behavior exists in financial markets [53; 54; 55; 56; 57]. Concerning momentum strategies, [PERSON] et al. [37] investigated currency momentum strategies traded on the Chinese Yuan and discovered that momentum strategies can be profitable when combined with a cross-trading strategy. [PERSON] and [PERSON] [58] provided ample evidence that momentum strategies work for Islamic stocks and discovered that market risk factors, such as excess market returns, value, size, and macroeconomic risk, are critical in explaining profits for investors. [PERSON], [PERSON], and [PERSON] [8] demonstrated that because individual investors account for 80% of the trading volume on Chinese stock exchanges, investors may employ momentum strategies for trading stocks. Recently, [PERSON] and [PERSON] [59] demonstrated that, although some cryptocurrency markets exhibit herding or trend chasing, others exhibit contrarian-type behavior. [PERSON] and [PERSON] [51] also revealed that herding behaviors positively influence stock risk premiums.  
Furthermore, the following studies might be conducted while delving into the world of cryptocurrency; [PERSON] et al. [60], for instance, unravel the enigmas surrounding cryptocurrency herding and impart knowledge that impacts portfolio construction, risk assessment, and trading strategies. The impact of COVID-19 on Bitcoin herding is examined by [PERSON] and [PERSON] [61], who doubt the established market efficiency hypothesis. [PERSON] and [PERSON] [62] introduce a groundbreaking examination of Bitcoin's response to crises, pro viding insights into the phenomenon of herding behavior. In their study, [PERSON] et al. [63] delve into the intricate realm of cryptocurrency inefficiencies, uncovering a dynamic market characterized by herd mentality in times of turmoil. In their seminal work, [PERSON] and [PERSON] [64] illuminate the speculative speculations surrounding Bitcoin by presenting empirical evidence that challenges widely accepted notions regarding the denominators of the currency. Participating in these studies will therefore facilitate comprehension of the intricacies inherent in the domain of cryptocurrencies.  
In terms of price overreaction, [PERSON], [PERSON], and [PERSON] [65] showed that the overreaction effect is frequently larger for smaller enterprises than for larger firms, particularly when it comes to earnings announcements. [PERSON] and [PERSON] [66] uncovered that overreactions are much stronger when investor sentiment is low rather than high because the contrast is stronger in low-sentiment environments, leading to stronger overreactions. [PERSON] and [PERSON] [67] investigated the prevalence of overreactions in cryptocurrency markets and found evidence that price overreactions are common in the cryptocurrency market, strongly supporting the overreaction hypothesis. However, based on the study of [PERSON] and [PERSON] [68], liquidity stimulates arbitrage activity, which not only reduces stock price overreaction but also improves market efficiency. Moreover, individual investors may pursue high-priced stocks, whereas institutional investors may reduce their shareholdings because of stock price overreaction [3,69].  
**H2:**_Due to the presence of herding behaviors in cryptocurrency markets, investors utilizing BBTS might not achieve advantageous outcomes._