A note on Bitcoin’s price volatility
Cryptocurrencies such as bitcoin are sometimes referred to as the new gold and the buzz that surrounded bitcoins in the last few years is akin to the old day’s gold rush. Cryptocurrencies are not directly linked to any monetary policy instruments or fundamentals. Therefore, the analysis of common fa...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Universitas Merdeka Malang
2019-07-01
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| Series: | Jurnal Keuangan dan Perbankan |
| Subjects: | |
| Online Access: | http://jurnal.unmer.ac.id/index.php/jkdp/article/view/3103 |
| _version_ | 1828424952705974272 |
|---|---|
| author | Ahmad Farid Abdul Hamid Ameen Ali Talib |
| author_facet | Ahmad Farid Abdul Hamid Ameen Ali Talib |
| author_sort | Ahmad Farid Abdul Hamid |
| collection | DOAJ |
| description | Cryptocurrencies such as bitcoin are sometimes referred to as the new gold and the buzz that surrounded bitcoins in the last few years is akin to the old day’s gold rush. Cryptocurrencies are not directly linked to any monetary policy instruments or fundamentals. Therefore, the analysis of common factors between these virtual currencies and other financial asset classes is challenging. Towards the end of 2017, Bitcoin’s price shot up to record high figures as cryptocurrency was gaining popularity not only for transactions but also for investments. This motivated us to investigate the relationship bitcoin prices have with Gold and stock index and crude oil. Historical prices were gathered from the start of 2017 to the end of the year, the Pearson’s Correlation analysis was chosen to study the relationship of Bitcoin and 3 other economic indicators namely gold, crude oil, and stock market prices. Then we did a multiple regression. Bitcoin has a correlation coefficient of 0.966 when compared to the stock market index S&P 500 which means that they both share similar properties and characteristics. The t statistic for each variable was also significant. This is paper explores the possible factors that are correlated with the surge in bitcoin prices and offers views on the relevance of bitcoin in today’s world. |
| first_indexed | 2024-12-10T16:25:18Z |
| format | Article |
| id | doaj.art-d25a72e72b08467380c4a7cc237467f6 |
| institution | Directory Open Access Journal |
| issn | 1410-8089 2443-2687 |
| language | English |
| last_indexed | 2024-12-10T16:25:18Z |
| publishDate | 2019-07-01 |
| publisher | Universitas Merdeka Malang |
| record_format | Article |
| series | Jurnal Keuangan dan Perbankan |
| spelling | doaj.art-d25a72e72b08467380c4a7cc237467f62022-12-22T01:41:42ZengUniversitas Merdeka MalangJurnal Keuangan dan Perbankan1410-80892443-26872019-07-0123337638410.26905/jkdp.v23i3.3103A note on Bitcoin’s price volatilityAhmad Farid Abdul Hamid0Ameen Ali Talib1School of Business, Singapore University of Social SciencesSchool of Business, Singapore University of Social SciencesCryptocurrencies such as bitcoin are sometimes referred to as the new gold and the buzz that surrounded bitcoins in the last few years is akin to the old day’s gold rush. Cryptocurrencies are not directly linked to any monetary policy instruments or fundamentals. Therefore, the analysis of common factors between these virtual currencies and other financial asset classes is challenging. Towards the end of 2017, Bitcoin’s price shot up to record high figures as cryptocurrency was gaining popularity not only for transactions but also for investments. This motivated us to investigate the relationship bitcoin prices have with Gold and stock index and crude oil. Historical prices were gathered from the start of 2017 to the end of the year, the Pearson’s Correlation analysis was chosen to study the relationship of Bitcoin and 3 other economic indicators namely gold, crude oil, and stock market prices. Then we did a multiple regression. Bitcoin has a correlation coefficient of 0.966 when compared to the stock market index S&P 500 which means that they both share similar properties and characteristics. The t statistic for each variable was also significant. This is paper explores the possible factors that are correlated with the surge in bitcoin prices and offers views on the relevance of bitcoin in today’s world.http://jurnal.unmer.ac.id/index.php/jkdp/article/view/3103BitcoinCrude oilGoldStock market prices |
| spellingShingle | Ahmad Farid Abdul Hamid Ameen Ali Talib A note on Bitcoin’s price volatility Jurnal Keuangan dan Perbankan Bitcoin Crude oil Gold Stock market prices |
| title | A note on Bitcoin’s price volatility |
| title_full | A note on Bitcoin’s price volatility |
| title_fullStr | A note on Bitcoin’s price volatility |
| title_full_unstemmed | A note on Bitcoin’s price volatility |
| title_short | A note on Bitcoin’s price volatility |
| title_sort | note on bitcoin s price volatility |
| topic | Bitcoin Crude oil Gold Stock market prices |
| url | http://jurnal.unmer.ac.id/index.php/jkdp/article/view/3103 |
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