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

0452318 - ÚTIA 2016 RIV US eng J - Journal Article
Krištoufek, Ladislav
What Are the Main Drivers of the Bitcoin Price? Evidence from Wavelet Coherence Analysis.
PLoS ONE. Roč. 10, č. 4 (2015), č. článku e0123923. ISSN 1932-6203. E-ISSN 1932-6203
R&D Projects: GA ČR(CZ) GBP402/12/G097
Institutional support: RVO:67985556
Keywords : Bitcoin * wavelet analysis
Subject RIV: AH - Economics
Impact factor: 3.057, year: 2015
http://library.utia.cas.cz/separaty/2015/E/kristoufek-0452318.pdf

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.
Permanent Link: http://hdl.handle.net/11104/0253713