My Economics Senior Research
FACTORS AFFECTING BITCOIN PRICE IN THE CRYPTOCURRENCY MARKET: AN EMPIRICAL STUDY
This study examines the relationships between Bitcoin and some major cryptocurrencies to better understand different market factors’ effects on their price formation. Our results show evidence of Bitcoin’s price is driven by both transactional demand, such as supply of Bitcoin or the size of Bitcoin economy, and speculative demand, namely media attention or price of another cryptocurrency. Bitcoin’s dominant player role may be jeopardized in the decentralized payment system market. In addition, since late December 2017, speculation for Bitcoin has been decreasing for several reasons, which can potential open opportunity for Bitcoin’s transactional demand to grow faster.
Keywords: behavioral cryptocurrency market, Bitcoin’s dominance, speculative demand, transactional demand, Bitcoin economy
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Background information and Analysis: TramNguyen-BTCPrice-Version-9-10.pdf
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Co-integration model and R code: BTC_Analysis.Rmd
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Data used for the model: Data folder
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Short summary of Analysis: Presentation.pdf