Cryptocurrencies, represented by Bitcoin, have also attracted a lot of attention in recent years, and with the outbreak of the new crown epidemic hitting the global economy, investors' cryptocurrency fever has remained high. However, people still have a limited understanding of the price formation process of such blockchain-based cryptocurrencies. In this paper, we empirically study the price (exchange rate against the U.S. dollar) and volatility of bitcoin in two different types of markets based on a signal theory using the ARDL model. According to the analysis in this paper, the price of bitcoin is sensitive to changes in investment market conditions and market sentiment, and the effect changes with the changing market environment. Based on this, this paper proposes a theoretical framework of bitcoin price influencing factors, which provides a theoretical basis for the bitcoin price formation mechanism and can help market participants to make more rational decisions.
Li, Zhengxin and Liu, Zhiyong, "Research on Bitcoin Price and Fluctuation" (2022). PACIS 2022 Proceedings. 124.
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