What Are the Main Drivers of the Bitcoin Price? Evidence from Wavelet Coherence Analysis

PLOS ONE, 2015, vol. 10, issue 4, 1-15

Abstract: 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.

Date: 2015
References: Add references at CitEc
Citations: View citations in EconPapers (13)

Downloads: (external link)
https://journals.plos.org/plosone/article?id=10.1371/journal.pone.0123923 (text/html)
https://journals.plos.org/plosone/article/file?id= ... 23923&type=printable (application/pdf)

Related works:
Working Paper: What are the main drivers of the Bitcoin price? Evidence from wavelet coherence analysis (2014)
Working Paper: What are the main drivers of the Bitcoin price? Evidence from wavelet coherence analysis (2014)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:plo:pone00:0123923

DOI: 10.1371/journal.pone.0123923

Access Statistics for this article

More articles in PLOS ONE from Public Library of Science
Bibliographic data for series maintained by plosone ().