What Are the Main Drivers of the Bitcoin Price? Evidence from Wavelet Coherence Analysis

The Bitcoin has emerged as a fascinating phenomenon in the Financial markets. Without any central authority issuing the currency, the Bitcoin has been associated with controversy ever since its popularity, accompanied by increased public interest, reached high levels. Here, we contribute to the discussion by examining the potential drivers of Bitcoin prices, ranging from fundamental sources to speculative and technical ones, and we further study the potential influence of the Chinese market. The evolution of relationships is examined in both time and frequency domains utilizing the continuous wavelets framework, so that we not only comment on the development of the interconnections in time but also distinguish…

• G
  Google
• RC
  Research Councils UK

  Award: EP/K039830/1
• EC
  European Commission

  Awards: FP7/2007-2013, 612955, 2007-2013, FP7/2007
• GA
  Grantová Agentura České Republiky

  Award: P402/12/G097
• EA
  Engineering and Physical Sciences Research Council

  Award: EP/K039830/1
• FS
  FP7 Socio-Economic Sciences and Humanities

  Award: 612955