Abstract
The study investigates the bitcoin-altcoin price synchronization hypothesis using cointegrating test and VEC Granger Causality/Block Exogeneity Test approaches on the daily data of bitcoin and ten selected alternative coins (altcoins) between August 8, 2015 and December 31, 2018. The data is structurally divided into three distinct periods which are; August 8, 2015 to December 31, 2016; January 1, 2017 to December 31, 2017 and January 1, 2018 to December 31, 2018. The study establishes pure price separation between the altcoin and bitcoin in 2015-2016, price synchronization between bitcoin and each of the selected altcoin in 2017 and dominant altcoin-to-bitcoin price formation in 2018. The study concludes that cryptocurrency buyers are more sensitive in 2018 to the features and quality of project each coin promotes, unlike the indiscriminating choices which dominated cryptocurrency world during the 2017 boom.
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