What are the main drivers of the Bitcoin price? Evidence from wavelet coherence analysis
Language English Country United States Media electronic-ecollection
Document type Journal Article, Research Support, Non-U.S. Gov't
PubMed
25874694
PubMed Central
PMC4398561
DOI
10.1371/journal.pone.0123923
PII: PONE-D-14-37804
Knihovny.cz E-resources
- MeSH
- Time Factors MeSH
- Models, Economic * MeSH
- Humans MeSH
- Commerce statistics & numerical data MeSH
- Wavelet Analysis MeSH
- Check Tag
- Humans MeSH
- Publication type
- Journal Article MeSH
- Research Support, Non-U.S. Gov't MeSH
The Bitcoin has emerged as a fascinating phenomenon in the Financial markets. Without any central authority issuing the currency, the Bitcoin has been associated with controversy ever since its popularity, accompanied by increased public interest, reached high levels. Here, we contribute to the discussion by examining the potential drivers of Bitcoin prices, ranging from fundamental sources to speculative and technical ones, and we further study the potential influence of the Chinese market. The evolution of relationships is examined in both time and frequency domains utilizing the continuous wavelets framework, so that we not only comment on the development of the interconnections in time but also distinguish between short-term and long-term connections. We find that the Bitcoin forms a unique asset possessing properties of both a standard financial asset and a speculative one.
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