The preference of Bitcoin and stocks in Indonesia

Abstract

Bitcoin is an alternative and is currently in demand by investors. This condition triggers investors' preferences to invest in stocks or cryptocurrencies. This study examines the causality between Bitcoin and the market index in Indonesia in terms of determining the preferences of investors. On this objective, the sample is taken from 1 January 2022 to 31 October 2022. The findings of this study imply that investors' preferences tend to be caused by stock price movements. But, the result of estimation also finds that the preference of investors tends to be influenced by the movement of Bitcoin.

The “Christmas Effect” on defensive accelerated stocks

“…The results show that the movement of returns in sub-period 2 is more efficient than in sub-period 1. Consistent with the findings from Pontoh and Budiarso (2022), Pontoh (2023), andJuliana et al (2023), the results of this study imply that economic information in sub-period 2 makes stock returns more efficient. Further confirmation, this study conducts the mean difference test.…”

“…The observation period is divided into two subperiods, which are: (1) 28 November 2022 to 23 December 2022; and (2) 26 December 2022 to 20 January 2023. Following Budiarso and Pontoh (2023), this study uses the capital asset pricing model (CAPM) in determining abnormal returns (AR) and systematic risk (SR) with the following formula.…”

“…Market efficiency Kiky (2018) finds that not all economic events affect market efficiency. However, Pontoh and Budiarso (2022), and Budiarso and Pontoh (2023) prove that market conditions in which stock prices fluctuate due to relevant information on economic events are called efficient markets. Juliana et al (2023) find that stock movements in Indonesia tend to be more efficient in the period from 2017 to 2020.…”