Fundamental and speculative components of the cryptocurrency pricing dynamics
The result's identifiers
Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F67985556%3A_____%2F23%3A00569560" target="_blank" >RIV/67985556:_____/23:00569560 - isvavai.cz</a>
Alternative codes found
RIV/00216208:11230/23:10459183
Result on the web
<a href="https://jfin-swufe.springeropen.com/articles/10.1186/s40854-023-00465-7" target="_blank" >https://jfin-swufe.springeropen.com/articles/10.1186/s40854-023-00465-7</a>
DOI - Digital Object Identifier
<a href="http://dx.doi.org/10.1186/s40854-023-00465-7" target="_blank" >10.1186/s40854-023-00465-7</a>
Alternative languages
Result language
angličtina
Original language name
Fundamental and speculative components of the cryptocurrency pricing dynamics
Original language description
The driving forces behind cryptoassets’ price dynamics are often perceived as being dominated by speculative factors and inherent bubble-bust episodes. Fundamental components are believed to have a weak, if any, role in the price-formation process. This study examines five cryptoassets with different backgrounds, namely Bitcoin, Ethereum, Litecoin, XRP, and Dogecoin between 2016 and 2022. It utilizes the cusp catastrophe model to connect the fundamental and speculative drivers with possible price bifurcation characteristics of market collapse events. The findings show that the price and return dynamics of all the studied assets, except for Dogecoin, emerge from complex interactions between fundamental and speculative components, including episodes of price bifurcations. Bitcoin shows the strongest fundamentals, with on-chain activity and economic factors driving the fundamental part of the dynamics. Investor attention and off-chain activity drive the speculative component for all studied assets. Among the fundamental drivers, the analyzed cryptoassets present their coin-specific factors, which can be tracked to their protocol specifics and are economically sound.
Czech name
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Czech description
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Classification
Type
J<sub>imp</sub> - Article in a specialist periodical, which is included in the Web of Science database
CEP classification
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OECD FORD branch
50202 - Applied Economics, Econometrics
Result continuities
Project
<a href="/en/project/GA20-17295S" target="_blank" >GA20-17295S: Cryptoassets: Pricing, Interconnectedness, Mining, and their Interactions</a><br>
Continuities
I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace
Others
Publication year
2023
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data specific for result type
Name of the periodical
Financial Innovation
ISSN
2199-4730
e-ISSN
2199-4730
Volume of the periodical
9
Issue of the periodical within the volume
1
Country of publishing house
US - UNITED STATES
Number of pages
23
Pages from-to
61
UT code for WoS article
000943644900001
EID of the result in the Scopus database
2-s2.0-85149920064