Bitcoin Market Price Analysis and an Empirical Comparison with Main Currencies, Commodities, Securities and Altcoins

Pirgaip, Burak; Dinçergök, Burcu; Haşlak, Şüheda

doi:10.1007/978-3-030-25275-5_8

Cited by 6 publications

(6 citation statements)

References 28 publications

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“…Returns lead all other variables in the short run, while in the long run, fundamental factors, technical factors and cost are significant in determining the price. The findings are similar to that of Ciacian et al (2016), Pirgaip et al (2019) and Corbet et al (2018).…”

Section: Discussionsupporting

confidence: 92%

“…A study by Adebola et al (2019) has found little co-integrating relationship between gold and cryptocurrency prices, suggesting no real significance in one affecting the other. The results from Corbet et al (2018) and Pirgaip et al (2019) confirm that the cryptocurrency market remains isolated from every other financial asset's market and thus, proves to be a good hedging tool. Bedi and Nashier (2019) consider financial instruments across six asset classes, and on checking the correlation, find that bitcoin is a relevant diversifying instrument in a portfolio.…”

Section: Literature Reviewmentioning

confidence: 59%

“…The results from Corbet et al. (2018) and Pirgaip et al. (2019) confirm that the cryptocurrency market remains isolated from every other financial asset's market and thus, proves to be a good hedging tool.…”

Section: Literature Reviewmentioning

confidence: 59%

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Short-run and long-run determinants of bitcoin returns: transnational evidence

Dubey

2022

RBF

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PurposeBitcoin has emerged as a phenomenal asset earning abnormal profits. However, the factors with predictability power over its price are not widely studied. Therefore, this study aims to explore the factors that determine bitcoin prices. The analysis explores the determinants belonging to four categories – macro economic, financial, technical and fundamental factors.Design/methodology/approachThe study employs random effects regression on the panel data of five countries. Then Granger causality test is applied on the time series of all the variables. Lastly, diagnostic tests are conducted to confirm the findings to be robust and reliable.FindingsThe findings suggest that oil price, bitcoin supply, trading volume and market capitalization significantly impact the price of bitcoin in the long run. In short run, bitcoin returns are only caused by oil price and market capitalization. Interestingly, bitcoin returns influence its attractiveness to investors, market capitalization, S&P 500 returns and trading volume, in the short run.Practical implicationsThe technical analysis is found to be redundant in the short run. In the long run, technical as well as fundamental analysis are useful. The bitcoin is found to be a good diversification tool as it has no linkages with the stock markets and gold market. It is also an inflationary hedger owing its limited supply.Originality/valueThe studies on cryptocurrency market have not conducted the analysis across countries. This study captures the cross-sectional effects along with time effects. The study also includes 17 variables belonging to four categories.

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Section: Discussionsupporting

confidence: 92%

Section: Literature Reviewmentioning

confidence: 59%

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Short-run and long-run determinants of bitcoin returns: transnational evidence

Dubey

2022

RBF

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“…Gold as a macro-financial factor was studied by Pirgaip et al (2019), who found gold has a two-way effect (bidirectional) on Bitcoin. However, Dyhrberg (2016) and İçellioǧlu and Öner (2019) proved that gold has a positive correlation with Bitcoin.…”

Section: Gold Price (G)mentioning

confidence: 99%

Is Bitcoin Price Driven by Macro-financial Factors and Liquidity? A Global Consumer Survey Empirical Study

Havidz

Karman

Mambea

2021

OMEE

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This research aims to utilize macro-financial and liquidity elements as the factors that may affect the price of Bitcoin as the largest cryptocurrency in terms of market capitalization. The macro-financial factors analyzed in this study were foreign exchange, stock market index, interest rates, and gold, while liquidity ratio is the internal factor. This study applied a fixed-effect model (FEM) and Generalized Method of Moments (GMM) on gathered weekly data from 1 January 2017 to 29 December 2019 from 18 countries with the total of 2,826 observations. The analysis revealed that US Dollar amplifies Bitcoin trading; an increase in interest rate will decrease investors’ intention to invest in Bitcoin as a speculative asset, and gold could replace Bitcoin as a substitute asset. Moreover, Bitcoin was found to be highly liquid, which attracts many investors, while the stock market index proved to be insignificant.

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“…When it comes to the research in Turkey, an essential part of the studies on cryptocurrencies in Turkey (Yıldırım, 2018;Kamisli, 2019;Pirgaip et al, 2019;Aghalıbaylı, 2019;Gürsoy, Tunçel and Sayar, 2020;Gül,2020;Deniz and Teker, 2019;Deniz and Teker, 2020;Deniz, 2020) focused on the interaction between cryptocurrencies and gold. Another group of studies (Dirican and Canoz, 2017;Hamid and Talib, 2019;Erdas and Çağlar, 2018;Gürsoy, Tunçel and Sayar, 2020) examined the relationship between cryptocurrencies and indices.…”

Section: Literature Reviewmentioning

confidence: 99%

Investigation of the Relationship Between Brent Oil and Cryptocurrencies During the Pandemic Period

Kurt

Kula

2021

J. corp. gov. insur. risk manag.

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The function of money plays an essential and indisputable role in the development of trade. Typically, banknotes and coins have always been introduced by central authorities. Emerging after the 2008 crisis, however, Bitcoin, considered to be the original cryptocurrency, contributed to money in an unprecedented dimension as it is the first decentralized peer-to-peer payment network. Cryptocurrencies are in constant interaction and the casualty relationship, among other variables, with Brent Oil. This study attempts to investigate the relationship between Bitcoin, Ethereum and Brent Oil price movements using 210 daily data from 10.12.2019 to 01.10.2020, featuring the period of the start and the spread of the COVID-19 pandemic. In this study, the casualty relationship among Brent Oil, Bitcoin and Ethereum was examined with the Granger Causality test. As a result of the study, a bidirectional casualty relationship is determined between Brent Oil and Ethereum. However, a one-way causality relationship is found between Brent Oil and Bitcoin. On the other hand, there is no causality relationship between Ethereum and Bitcoin.

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Bitcoin Market Price Analysis and an Empirical Comparison with Main Currencies, Commodities, Securities and Altcoins

Cited by 6 publications

References 28 publications

Short-run and long-run determinants of bitcoin returns: transnational evidence

Short-run and long-run determinants of bitcoin returns: transnational evidence

Is Bitcoin Price Driven by Macro-financial Factors and Liquidity? A Global Consumer Survey Empirical Study

Investigation of the Relationship Between Brent Oil and Cryptocurrencies During the Pandemic Period

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