EconPapers    
Economics at your fingertips  
 

Exploring co-explosive dynamics: Bitcoin price, attractiveness, and sentiment variables

Diogo de Prince, Emerson Fernandes Marçal and Pedro L. Valls Pereira
Authors registered in the RePEc Author Service: Diogo de Prince Mendonça ()

Economics Letters, 2025, vol. 246, issue C

Abstract: This study applies a co-explosive VAR model based on the methodologies of Nielsen (2010) and Engsted and Nielsen (2012). to estimate the determinants of Bitcoin price in the long term such as the gold price, S&P500, Google searches for Bitcoin, and the financial stress index. We explore the co-explosive dynamics between Bitcoin’s price and these factors. Using weekly data spanning from October 4, 2013, to September 24, 2021, the research uncovers a four-explosive-root relationship with Bitcoin’s price. Our primary emphasis is on the interaction between Bitcoin’s price and Google search interest. Enhanced Google search activity is correlated with an increase in Bitcoin’s price in the long term. The Bitcoin price and Google search volumes adjust to long-term deviations from their established relationship, classifying them as explosive variables. This behavior of Bitcoin’s price is consistent with existing literature that highlights its inherently explosive nature.

Keywords: Co-explosive dynamics; Bitcoin price; Sentiment variables (search for similar items in EconPapers)
JEL-codes: C32 C58 G11 (search for similar items in EconPapers)
Date: 2025
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0165176524005561
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:246:y:2025:i:c:s0165176524005561

DOI: 10.1016/j.econlet.2024.112072

Access Statistics for this article

Economics Letters is currently edited by Economics Letters Editorial Office

More articles in Economics Letters from Elsevier
Bibliographic data for series maintained by Catherine Liu ().

 
Page updated 2025-05-29
Handle: RePEc:eee:ecolet:v:246:y:2025:i:c:s0165176524005561