jefa Journal of Economics Finance and Accounting 2148-6697 Suat TEKER Finance Finans THE ABILENE PARADOX AND COLLECTIVE IRRATIONALITY IN CRYPTOCURRENCY MARKETS: A SOCIAL MEDIA SENTIMENT ANALYSIS https://orcid.org/0000-0002-2261-8691 Jia-Ying Lyu National Sun Yat-sen University 12 31 2025 12 2 162 176 11 02 2025 12 20 2025 Copyright © 2014, Journal of Economics Finance and Accounting 2014 Journal of Economics Finance and Accounting

Purpose- This study investigates the manifestation of the Abilene Paradox within the context of collective irrational behavior incryptocurrency markets, utilizing social media data for sentiment analysis. The Abilene Paradox describes a phenomenon where a groupcollectively decides on a course of action that is contrary to the preferences of most or all individuals, as each mistakenly believes it alignswith the desires of others. In the highly community-driven cryptocurrency market, this paradox can exacerbate herd behavior and the Fearof Missing Out (FOMO), leading to significant market volatility.Methodology- Through sentiment analysis of discussions on social media platforms (e.g., Twitter, Reddit) concerning specificcryptocurrencies (e.g., Meme Coins), this research explores how community sentiment influences market behavior and price movements.Findings- The study considers the impact of community variables (e.g., community size, opinion leader influence), sentiment variables (e.g.,positive/negative sentiment indices, sentiment polarization), and market variables (e.g., trading volume, price volatility) on collectiveirrational behavior.Conclusion- It aims to establish a generalized model explaining the relationship between social media sentiment and market behavior. Thefindings will contribute to understanding the behavioral economics characteristics of cryptocurrency markets and offer new perspectivesfor investors and regulators.

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