Long-term nexus of macroeconomic and financial fundamentals with cryptocurrencies

We investigate the long-term impact of macroeconomic and financial factors on cryptocurrency metrics using both parametric and non-parametric methods. Our analysis examines how these factors influence cryptocurrency prices, market capitalizations, and Bitcoin’s hash rate. The results establish that...

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Main Author: Panayiotis M. Pourpourides
Format: Article
Language:English
Published: Frontiers Media S.A. 2025-03-01
Series:Frontiers in Blockchain
Subjects:
Online Access:https://www.frontiersin.org/articles/10.3389/fbloc.2025.1550720/full
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author Panayiotis M. Pourpourides
author_facet Panayiotis M. Pourpourides
author_sort Panayiotis M. Pourpourides
collection DOAJ
description We investigate the long-term impact of macroeconomic and financial factors on cryptocurrency metrics using both parametric and non-parametric methods. Our analysis examines how these factors influence cryptocurrency prices, market capitalizations, and Bitcoin’s hash rate. The results establish that two key factors, the US dollar and the price of gold, adversely affect Bitcoin and other cryptocurrency metrics, including the prices and market capitalizations of decentralized finance and layer-one protocols. Bitcoin’s hash rate demonstrates greater market sensitivity than its price, with the dollar having a stronger impact on Bitcoin than gold. The dollar primarily affects Bitcoin’s price, whereas gold mainly influences its hash rate. These findings, along with Bitcoin’s properties, support the view of Bitcoin as a digital asset analogous to physical gold, playing a role similar to a substitute for the latter.
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publishDate 2025-03-01
publisher Frontiers Media S.A.
record_format Article
series Frontiers in Blockchain
spelling doaj-art-cda3d4c3ffe84b3e8fafae4f754046a42025-08-20T03:44:27ZengFrontiers Media S.A.Frontiers in Blockchain2624-78522025-03-01810.3389/fbloc.2025.15507201550720Long-term nexus of macroeconomic and financial fundamentals with cryptocurrenciesPanayiotis M. PourpouridesWe investigate the long-term impact of macroeconomic and financial factors on cryptocurrency metrics using both parametric and non-parametric methods. Our analysis examines how these factors influence cryptocurrency prices, market capitalizations, and Bitcoin’s hash rate. The results establish that two key factors, the US dollar and the price of gold, adversely affect Bitcoin and other cryptocurrency metrics, including the prices and market capitalizations of decentralized finance and layer-one protocols. Bitcoin’s hash rate demonstrates greater market sensitivity than its price, with the dollar having a stronger impact on Bitcoin than gold. The dollar primarily affects Bitcoin’s price, whereas gold mainly influences its hash rate. These findings, along with Bitcoin’s properties, support the view of Bitcoin as a digital asset analogous to physical gold, playing a role similar to a substitute for the latter.https://www.frontiersin.org/articles/10.3389/fbloc.2025.1550720/fullJEL classification codes: E44G10G12G19 blockchainbitcoincrypto
spellingShingle Panayiotis M. Pourpourides
Long-term nexus of macroeconomic and financial fundamentals with cryptocurrencies
Frontiers in Blockchain
JEL classification codes: E44
G10
G12
G19 blockchain
bitcoin
crypto
title Long-term nexus of macroeconomic and financial fundamentals with cryptocurrencies
title_full Long-term nexus of macroeconomic and financial fundamentals with cryptocurrencies
title_fullStr Long-term nexus of macroeconomic and financial fundamentals with cryptocurrencies
title_full_unstemmed Long-term nexus of macroeconomic and financial fundamentals with cryptocurrencies
title_short Long-term nexus of macroeconomic and financial fundamentals with cryptocurrencies
title_sort long term nexus of macroeconomic and financial fundamentals with cryptocurrencies
topic JEL classification codes: E44
G10
G12
G19 blockchain
bitcoin
crypto
url https://www.frontiersin.org/articles/10.3389/fbloc.2025.1550720/full
work_keys_str_mv AT panayiotismpourpourides longtermnexusofmacroeconomicandfinancialfundamentalswithcryptocurrencies