The Influence of FOMO (Fear of Missing Out) and Herding Behavior on Cryptocurrency Investment Decisions Among GIBEI Members in the Ciayumajakuning Region: The Mediating Role of Financial Literacy

Abstrak

This study aims to analyze the influence of Fear of Missing Out (FOMO) and herding behavior on cryptocurrency investment decisions among members of the Indonesia Stock Exchange Investment Gallery (GIBEI) in the Ciayumajakuning region, with financial literacy as a mediating variable. A quantitative associative approach was employed, utilizing survey data collected from GIBEI members and analyzed through Partial Least Squares–Structural Equation Modeling (PLS-SEM). Results from the measurement model confirm that all constructs satisfy validity and reliability criteria. Structural model testing reveals that FOMO exerts a positive and significant effect on cryptocurrency investment decisions, while herding behavior does not directly influence investment decisions in a statistically significant manner. FOMO shows no significant effect on financial literacy, whereas herding behaviorpositively and significantly influences financial literacy. Financial literacy, however, does not significantly affect cryptocurrency investment decisions, and consequently fails to mediate the influence of either FOMO or herding behavior on investment decisions. These findings underscore that cryptocurrency investment decisions among GIBEI members are predominantly driven by psychological rather than cognitive factors. Accordingly, financial literacy enhancement programs must be complemented by emotional regulation training and awareness of behavioral biases to foster more rational investor decision-making.

Keywords: Fear of Missing Out (FOMO), Herding Behavior, Financial Literacy, Cryptocurrency Investment Decisions, PLS-SEM