An Explanatory Model for the price of Bitcoin and the public interest in the topic
DOI:
https://doi.org/10.51359/2965-4661.2023.258656Keywords:
Bitcoin, cryptocurrency valuation, pricing, cryptocurrency, money marketAbstract
The volume of cryptocurrency transactions is gaining momentum in the market and attracting attention to better understand the evaluation processes, procedures, and pricing. This study describes a model that contains a set of basic pricing factors for cryptocurrency. The approach considers the monetary survey in the American financial market and statistically describes some basic properties of these prices, examines the relationship between the money market and the main factors specific to cryptocurrencies and investigates potential drivers and predictors of quotations. The results based on the exploratory analysis and time series regression suggest that the term "bitcoin price" BTC_PRICE in Google Trends® searches presents a significant impact on fluctuations in the price of Bitcoin.
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