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The role of Bitcoin on developed and emerging markets – on the basis of a Bitcoin users graph analysis

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  • Mizerka, Jacek
  • Stróżyńska-Szajek, Agnieszka
  • Mizerka, Piotr

Abstract

This paper joins discussions about Bitcoin's relationship to investments in developed and emerging markets. Our study contributes to the ongoing discussion of the role of Bitcoin for investors. In our research, we analyse relationships on financial markets with Bitcoin user graph characteristics. We examine the relationships between Bitcoin rates of return, stock indices, and variables characterising Bitcoin users who carried out the largest number of Bitcoin buy and sell transactions and users who carried out transactions with the highest amounts. We mainly focus on the problem whether the Bitcoin rate of return is mostly driven by capital market situation or major Bitcoin users behaviour. Our results confirmed that there is not, in general, significant relationship between financial market situation (if such relationship does exist, it is found in emerging markets). However, our findings indicate a significant impact of the behaviour of major Bitcoin users on Bitcoin rate of return.

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  • Mizerka, Jacek & Stróżyńska-Szajek, Agnieszka & Mizerka, Piotr, 2020. "The role of Bitcoin on developed and emerging markets – on the basis of a Bitcoin users graph analysis," Finance Research Letters, Elsevier, vol. 35(C).
    • Handle: RePEc:eee:finlet:v:35:y:2020:i:c:s1544612319307408
    DOI: 10.1016/j.frl.2020.101489
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    3. Virginie Terraza & Aslı Boru İpek & Mohammad Mahdi Rounaghi, 2024. "The nexus between the volatility of Bitcoin, gold, and American stock markets during the COVID-19 pandemic: evidence from VAR-DCC-EGARCH and ANN models," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 10(1), pages 1-34, December.
    4. Shafique Ur Rehman & Touqeer Ahmad & Wu Dash Desheng & Amirhossein Karamoozian, 2024. "Analyzing selected cryptocurrencies spillover effects on global financial indices: Comparing risk measures using conventional and eGARCH-EVT-Copula approaches," Papers 2407.15766, arXiv.org.
    5. Goodell, John W. & Corbet, Shaen & Yadav, Miklesh Prasad & Kumar, Satish & Sharma, Sudhi & Malik, Kunjana, 2022. "Time and frequency connectedness of green equity indices: Uncovering a socially important link to Bitcoin," International Review of Financial Analysis, Elsevier, vol. 84(C).
    6. Just, Małgorzata & Echaust, Krzysztof, 2024. "Cryptocurrencies against stock market risk: New insights into hedging effectiveness," Research in International Business and Finance, Elsevier, vol. 67(PA).
    7. Sha, Yezhou & Song, Weijia, 2021. "Can Bitcoin hedge Belt and Road equity markets?," Finance Research Letters, Elsevier, vol. 42(C).
    8. Hang Bui Thi Thu & Huy Dinh Tran Ngoc & An Phan Thuy & Ngoc Nguyen Thi Bich & Duyen Huynh Thi My, 2020. "Current situation of Bitcoin management and use: perspectives from the world and recommendations for vietnam," Management, Sciendo, vol. 24(2), pages 209-235, December.
    9. Chkili, Walid & Ben Rejeb, Aymen & Arfaoui, Mongi, 2021. "Does bitcoin provide hedge to Islamic stock markets for pre- and during COVID-19 outbreak? A comparative analysis with gold," Resources Policy, Elsevier, vol. 74(C).

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    More about this item

    Keywords

    Bitcoin users graph; MSCI indices; Principal component analysis;
    All these keywords.

    JEL classification:

    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • G19 - Financial Economics - - General Financial Markets - - - Other

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