Do Major Currency Trading Volumes Explain the Rise of Bitcoin’s Price?

Jordan Evans and Christopher C. Klein

Journal for Economic Educators, 2018, vol. 18, issue 1, 39-45

Abstract: We examine the determinants of the Bitcoin price over the period from September 2012 to September 2017. Unlike conventional currency demand models, trading volume is negatively related to the Bitcoin price and the frequency of Internet searches for the term Bitcoin is positively associated with the price. We find strong and significant time trends in the Bitcoin price. These results suggest that the rise in Bitcoin’s price during our observation period was driven largely by speculation.

Keywords: bitcoin; cryptocurrency; speculation (search for similar items in EconPapers)
JEL-codes: A22 E42 F33 F65 G41 (search for similar items in EconPapers)
Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:mts:jrnlee:v:18:y:2018:i:1:p:39-45

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