Bitcoin Price Bubbles and The Factors Driving Bitcoin Price Formation
Küçük Resim Yok
Tarih
2024
Yazarlar
Dergi Başlığı
Dergi ISSN
Cilt Başlığı
Yayıncı
Ege Univ, Fac Economics & Admin Sciences
Erişim Hakkı
info:eu-repo/semantics/openAccess
Özet
Bitcoin, one of the most discussed events of recent times, is the first cryptocurrency to be released. Bitcoin has the biggest market capitalization in the cryptocurrencies, and it is a decentralized payment tool that cannot be controlled by any government institution. Cryptocurrencies operate on top of a decentralized network, recording and verifying transactions using Blockchain. Many bubble price formations occurred in financial markets throughout history. Cryptocurrency markets are prone to manipulation because they are not connected to any center. This study aims to to investigate the bubble formations in Bitcoin (BTC) US Dollar price for the period of 11 December 2017 - 31 July 2023, and determine the main financial variables affecting Bitcoin prices. ARDL Bounds test proves the cointegration between Bitcoin price and dependent variables. Error Correction Model determines a positive connection between BTC and the Nasdaq100 index. A daily change in the Nasdaq100 index leads to a 0.58% increase in BTC price. The model captures also a negative relationship between the Volatility Index, USD Index and BTC price. No long-term relationship emerges in the results. In the long run, unique and different variables shape BTC price formation.
Açıklama
Anahtar Kelimeler
Cryptocurrency, Bitcoin, Price Bubble, Financial Modeling, ARDL Model
Kaynak
Ege Academic Review
WoS Q Değeri
N/A
Scopus Q Değeri
N/A
Cilt
24
Sayı
4
