Economics at your fingertips  

Analysis of the relationships between Bitcoin and exchange rate, commodities and global indexes by asymmetric causality test

Mehmet Levent Erdas () and Abdullah Emre Caglar ()
Additional contact information
Mehmet Levent Erdas: Akdeniz University, Antalya, Turkey
Abdullah Emre Caglar: Akdeniz University, Antalya, Turkey

Eastern Journal of European Studies, 2018, vol. 9(2), 27-45

Abstract: This study investigates the asymmetric causal relations between Bitcoin and gold, Brent oil, US dollar, S&P 500 and BIST 100 Indexes for the weekly data of the period between November 2013 and July 2018 via by Hatemi-J (2012) test. The results indicate only a causal link going from the Bitcoin price to S&P 500 Index. Consequently, a change in Bitcoin prices appears to influence the investors’ decisions on the S&P 500 Index. Therefore, it can be said that the investors in S&P 500 Index have closely followed the new macro-financial developments in the market and have been active on the S&P 500 market. However, the presence of a causality relation between Bitcoin price and other variables cannot be determined. Thus, it is supposed that Bitcoin may exist in association with the commodity market and other global indicators in the future, along with the recognition of the Bitcoin currency by countries, its being accepted as a means of exchange and its increased reliability.

Keywords: bitcoin; commodities; exchange rates; global indexes; asymmetric causality test (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7) Track citations by RSS feed

Downloads: (external link) (application/pdf)

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:

Access Statistics for this article

More articles in Eastern Journal of European Studies from Centre for European Studies, Alexandru Ioan Cuza University Contact information at EDIRC.
Bibliographic data for series maintained by Alupului Ciprian ().

Page updated 2023-05-18
Handle: RePEc:jes:journl:y:2018:v:9:p:27-45