The effect of global price movements on the energy sector commodity on bitcoin price movement during the COVID-19 pandemic

Abstract

This study aims to determine the effect of global price movements for energy sector commodities, especially Crude Oil and Natural Gas Prices, on cryptocurrency price movements. This study focuses more on the Bitcoin cryptocurrency. This study uses quantitative methods, and the data collection used is secondary data with weekly data and the period from January 1, 2020–July 31, 2021. The number of observations used in this study amounted to 79 observations. Secondary data sources are obtained through the website finance.yahoo.com. The data processing technique will be carried out using Stata and SPSS software, the Multiple Linear Regression method, and the Classical Assumption Test. The results of this study show that global prices for energy sector commodities, especially Crude Oil, Natural Gas, have a positive effect on Bitcoin price movements. These results indicate a link between energy and Bitcoin caused by Bitcoin miners who are mining Bitcoin using energy so that when the price of Bitcoin rises, the price of energy will also increase.