The driving forces behind the prices of major cryptocurrencies: Evidence from the past five years
Purpose: The primary objective of this study is to uncover the complex relationship between cryptocurrency prices and significant global events that transpired within the past five years. These events encompass a wide spectrum, including political and global health crises, the public disclosure of m...
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| Format: | Article |
| Language: | Catalan |
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OmniaScience
2024-05-01
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| Series: | Intangible Capital |
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| Online Access: | https://www.intangiblecapital.org/index.php/ic/article/view/2575 |
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| author | Medina Ayta Mohammed Carmen De Pablos Heredero José Luis Montes Botella |
| author_facet | Medina Ayta Mohammed Carmen De Pablos Heredero José Luis Montes Botella |
| author_sort | Medina Ayta Mohammed |
| collection | DOAJ |
| description | Purpose: The primary objective of this study is to uncover the complex relationship between cryptocurrency prices and significant global events that transpired within the past five years. These events encompass a wide spectrum, including political and global health crises, the public disclosure of multinational enterprises' investments in cryptocurrencies, and the influence of macroeconomic indicators. Beyond the exclusive focus on Bitcoin, this study adopts a more comprehensive approach encompassing various cryptocurrencies.
Design/methodology/approach: This study examines the effects of the disclosure of cryptocurrency adoption plans by major corporations, the Russian-Ukraine war, Covid-19, Inflation rate, and Economic policy uncertainty within the U.S., U.K., and E.U on cryptocurrency prices (Bitcoin, Ethereum, and Binance coin) using a structural equation model over the past five years.
Findings: Our findings provided several compelling insights. Most notably, during the study period major corporations’ adoption of cryptocurrencies positively influenced their price. Furthermore, a negative and significant association emerges between cryptocurrency prices and periods marked by economic policy uncertainty and inflation rates in the countries under investigation (U.S., U.K., and E.U). The results are robust under variations in sample composition and changes in sets of variables.
Originality/value: The study uncovered the complex relationship between cryptocurrency price fluctuations and significant global events that transpired within the past five years by taking the factors identified in previous literature as a whole and adding new variables that are not well studied, such as the effect of Russian-Ukraine War and multinational corporations revealing cryptocurrency adoption intention on the prices of cryptocurrencies. This study represents a pivotal contribution by bridging a crucial research void and providing theoretical insights into the legal considerations to be undertaken by policymakers, and informed investment practices by traders, and corporate leaders. |
| format | Article |
| id | doaj-art-9b4cf81a6e4742d38b6871ad7e3a7d59 |
| institution | Kabale University |
| issn | 1697-9818 |
| language | Catalan |
| publishDate | 2024-05-01 |
| publisher | OmniaScience |
| record_format | Article |
| series | Intangible Capital |
| spelling | doaj-art-9b4cf81a6e4742d38b6871ad7e3a7d592024-12-04T08:30:25ZcatOmniaScienceIntangible Capital1697-98182024-05-0120229932010.3926/ic.2575561The driving forces behind the prices of major cryptocurrencies: Evidence from the past five yearsMedina Ayta Mohammed0Carmen De Pablos Heredero1José Luis Montes Botella2Rey Juan Carlos UniversityRey Juan Carlos UniversityRey Juan Carlos UniversityPurpose: The primary objective of this study is to uncover the complex relationship between cryptocurrency prices and significant global events that transpired within the past five years. These events encompass a wide spectrum, including political and global health crises, the public disclosure of multinational enterprises' investments in cryptocurrencies, and the influence of macroeconomic indicators. Beyond the exclusive focus on Bitcoin, this study adopts a more comprehensive approach encompassing various cryptocurrencies. Design/methodology/approach: This study examines the effects of the disclosure of cryptocurrency adoption plans by major corporations, the Russian-Ukraine war, Covid-19, Inflation rate, and Economic policy uncertainty within the U.S., U.K., and E.U on cryptocurrency prices (Bitcoin, Ethereum, and Binance coin) using a structural equation model over the past five years. Findings: Our findings provided several compelling insights. Most notably, during the study period major corporations’ adoption of cryptocurrencies positively influenced their price. Furthermore, a negative and significant association emerges between cryptocurrency prices and periods marked by economic policy uncertainty and inflation rates in the countries under investigation (U.S., U.K., and E.U). The results are robust under variations in sample composition and changes in sets of variables. Originality/value: The study uncovered the complex relationship between cryptocurrency price fluctuations and significant global events that transpired within the past five years by taking the factors identified in previous literature as a whole and adding new variables that are not well studied, such as the effect of Russian-Ukraine War and multinational corporations revealing cryptocurrency adoption intention on the prices of cryptocurrencies. This study represents a pivotal contribution by bridging a crucial research void and providing theoretical insights into the legal considerations to be undertaken by policymakers, and informed investment practices by traders, and corporate leaders.https://www.intangiblecapital.org/index.php/ic/article/view/2575cryptocurrencies, sem, inflation rate, uncertainty, economic policy |
| spellingShingle | Medina Ayta Mohammed Carmen De Pablos Heredero José Luis Montes Botella The driving forces behind the prices of major cryptocurrencies: Evidence from the past five years Intangible Capital cryptocurrencies, sem, inflation rate, uncertainty, economic policy |
| title | The driving forces behind the prices of major cryptocurrencies: Evidence from the past five years |
| title_full | The driving forces behind the prices of major cryptocurrencies: Evidence from the past five years |
| title_fullStr | The driving forces behind the prices of major cryptocurrencies: Evidence from the past five years |
| title_full_unstemmed | The driving forces behind the prices of major cryptocurrencies: Evidence from the past five years |
| title_short | The driving forces behind the prices of major cryptocurrencies: Evidence from the past five years |
| title_sort | driving forces behind the prices of major cryptocurrencies evidence from the past five years |
| topic | cryptocurrencies, sem, inflation rate, uncertainty, economic policy |
| url | https://www.intangiblecapital.org/index.php/ic/article/view/2575 |
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