Bubbles in Bitcoin and Ethereum: The role of halving in the formation of super cycles
This study examines the price dynamics of Bitcoin and Ethereum between 2013 and 2022 using two distinct approaches: financial market technical analysis and econometric analysis. Financial market technical analysis employs indicators such as the Relative Strength Index (RSI) and the Hull moving avera...
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| Format: | Article |
| Language: | English |
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Elsevier
2024-06-01
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| Series: | Sustainable Futures |
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| Online Access: | http://www.sciencedirect.com/science/article/pii/S2666188824000285 |
| _version_ | 1797267128777179136 |
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| author | Gilles Brice M'bakob |
| author_facet | Gilles Brice M'bakob |
| author_sort | Gilles Brice M'bakob |
| collection | DOAJ |
| description | This study examines the price dynamics of Bitcoin and Ethereum between 2013 and 2022 using two distinct approaches: financial market technical analysis and econometric analysis. Financial market technical analysis employs indicators such as the Relative Strength Index (RSI) and the Hull moving average, while econometric analysis involves the Hodrick-Prescott filter and an Autoregressive Distributed Lag (ARDL) model. The study shows that Bitcoin and Ethereum experienced supercycle years in 2013, 2017, and 2021. The Bitcoin cycle, which averages 3.5 years, was particularly emphasized. The impact of the Bitcoin halving is also noteworthy, especially in the formation of supercycle bubbles in 2021, which affected altcoins such as Ethereum. The implications of this extend to portfolio management advice. It is recommended to carefully evaluate portfolio diversification and adopt a proactive regulatory approach, especially during the Bitcoin halving period. |
| first_indexed | 2024-04-25T01:11:40Z |
| format | Article |
| id | doaj.art-9d9af647eb694f3286f59f617ab4d82e |
| institution | Directory Open Access Journal |
| issn | 2666-1888 |
| language | English |
| last_indexed | 2024-04-25T01:11:40Z |
| publishDate | 2024-06-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Sustainable Futures |
| spelling | doaj.art-9d9af647eb694f3286f59f617ab4d82e2024-03-10T05:13:11ZengElsevierSustainable Futures2666-18882024-06-017100178Bubbles in Bitcoin and Ethereum: The role of halving in the formation of super cyclesGilles Brice M'bakob0University of Douala, Faculty of Economics and Applied Management Sciences, CameroonThis study examines the price dynamics of Bitcoin and Ethereum between 2013 and 2022 using two distinct approaches: financial market technical analysis and econometric analysis. Financial market technical analysis employs indicators such as the Relative Strength Index (RSI) and the Hull moving average, while econometric analysis involves the Hodrick-Prescott filter and an Autoregressive Distributed Lag (ARDL) model. The study shows that Bitcoin and Ethereum experienced supercycle years in 2013, 2017, and 2021. The Bitcoin cycle, which averages 3.5 years, was particularly emphasized. The impact of the Bitcoin halving is also noteworthy, especially in the formation of supercycle bubbles in 2021, which affected altcoins such as Ethereum. The implications of this extend to portfolio management advice. It is recommended to carefully evaluate portfolio diversification and adopt a proactive regulatory approach, especially during the Bitcoin halving period.http://www.sciencedirect.com/science/article/pii/S2666188824000285G12G14G23E44 |
| spellingShingle | Gilles Brice M'bakob Bubbles in Bitcoin and Ethereum: The role of halving in the formation of super cycles Sustainable Futures G12 G14 G23 E44 |
| title | Bubbles in Bitcoin and Ethereum: The role of halving in the formation of super cycles |
| title_full | Bubbles in Bitcoin and Ethereum: The role of halving in the formation of super cycles |
| title_fullStr | Bubbles in Bitcoin and Ethereum: The role of halving in the formation of super cycles |
| title_full_unstemmed | Bubbles in Bitcoin and Ethereum: The role of halving in the formation of super cycles |
| title_short | Bubbles in Bitcoin and Ethereum: The role of halving in the formation of super cycles |
| title_sort | bubbles in bitcoin and ethereum the role of halving in the formation of super cycles |
| topic | G12 G14 G23 E44 |
| url | http://www.sciencedirect.com/science/article/pii/S2666188824000285 |
| work_keys_str_mv | AT gillesbricembakob bubblesinbitcoinandethereumtheroleofhalvingintheformationofsupercycles |