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What are the main drivers of the Bitcoin price? Evidence from wavelet coherence analysis

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  • Ladislav Kristoufek
Abstract
Bitcoin has emerged as a fascinating phenomenon of the financial markets. Without any central authority issuing the currency, it has been associated with controversy ever since its popularity and public interest reached high levels. Here, we contribute to the discussion by examining potential drivers of Bitcoin prices ranging from fundamental to speculative and technical sources as well as a potential influence of the Chinese market. The evolution of the relationships is examined in both time and frequency domains utilizing the continuous wavelets framework so that we comment on development of the interconnections in time but we can also distinguish between short-term and long-term connections.

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  • Ladislav Kristoufek, 2014. "What are the main drivers of the Bitcoin price? Evidence from wavelet coherence analysis," Papers 1406.0268, arXiv.org.
    • Handle: RePEc:arx:papers:1406.0268
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    References listed on IDEAS

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    1. David Garcia & Claudio Juan Tessone & Pavlin Mavrodiev & Nicolas Perony, 2014. "The digital traces of bubbles: feedback cycles between socio-economic signals in the Bitcoin economy," Papers 1408.1494, arXiv.org.
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