Fed study: Crypto investors swayed by beliefs and returns

The Cleveland Fed's finding points to a belief-driven, performance-chasing investor base, which matters less for what it says about any single asset than for how it frames crypto demand as sentiment-sensitive rather than fundamentals-anchored. That has implications for anyone tracking how retail flows respond to past returns, and for how market structure behaves when narratives shift. The open question is whether this return-chasing pattern persists across cycles or fades as the investor base matures.