Cryptocurrency Market Research Articles

ATTRACTING INNOVATIVE ARTIFICIAL INTELLIGENCE TOOLS TO THE CRYPTOCURRENCY MARKET

The purpose of the article is to conduct a study and determine the importance and benefits of using artificial intelligence (AI) tools for certain areas of the cryptocurrency market, in particular, detecting and preventing fraud in the cryptocurrency market, as well as the possibilities of using AI chatbots in trading and in the formation of investment portfolios. The article covers the analysis of the growth of digital currencies and the increasing number of hacker attacks, defines the role of AI in ensuring security, considers methods of fraud detection and prevention, and analyses development prospects. AI plays a crucial role in identifying suspicious transactions and preventing fraud. The study aims to investigate the benefits and potential risks of AI bots. AI's integration has transformed the market, enabling more informed decision-making, improved investment strategies, and higher returns. The article emphasizes the need for ongoing research into the evolving landscape of AI in cryptocurrency, discussing challenges, and the potential to finance sphere. The integration of AI in fraud detection has proven advantageous, enabling real-time data analysis and pattern recognition, enhancing security for investors. The article also addresses concerns such as algorithmic bias and the displacement of traders and using AI chat bots. While acknowledging the risks, it highlights the positive impact of AI on efficiency, reliability, and security in the cryptocurrency marketThe article presents an algorithmisation of the possibilities and procedures for engaging artificial intelligence in the fight against fraud, as well as recommendations for market participants and regulators. The presented results highlight the existing innovative potential of AI to improve the security and efficiency of the functioning of participants in the cryptocurrency market. Overall, the article suggests that AI's transformative influence in the cryptocurrency market is a game changer, shaping the industry's future and presenting opportunities for growth and innovation.

The Impact of China's Virtual Currency Policy on the Bitcoin Market

This thesis aims to understand and analyze the impact of China's virtual currency policy on the Bitcoin market. This paper will summarize the impact of digital technology on cryptocurrencies, including the development path, technological development, process, and regulation through literature search, data analysis, and government policies to comprehensively analyze the impact of the virtual currency policy on cryptocurrency circulation. Regulators and governments must formulate appropriate policies and measures to ensure compliance and stability in the cryptocurrency market. This paper analyzes the Bitcoin market as an example by using a mathematical model to reflect the trend and direction of the market before and after the release of the policy and using the model to predict future changes in the Bitcoin market. The Chinese government's regulatory measures have led to the closure of several Bitcoin miners, which has affected Bitcoin mining activity. Second, the decline in liquidity in the Chinese market has led to short-term volatility in the price of bitcoin. In addition, some investors may view Bitcoin as a safe-haven asset against an uncertain policy environment. Overall, China's virtual currency policies have had a multifaceted impact on the Bitcoin market, and these impacts are still evolving to some extent. This research provides valuable insights into the dynamics of the global Bitcoin market and the impact of virtual currency regulation.

Cryptocurrencies from a behavioural finance perspective

In today’s world, cryptocurrencies are no longer a technological miracle for a small group of programmers. They have become a very common investment instrument that attracts the attention of both traditional investors (funds and traders) and those who are not interested in classical markets and investing in general. This is especially true for bitcoin. The purpose of the study was to investigate the influence of behavioural psychology in making investment decisions in cryptocurrency markets. The research methods included analysing historical data on cryptocurrency prices, as well as observing investors’ reactions to important events and news related to cryptocurrencies. In addition, behavioural analysis methods were used to understand and predict investors’ reactions to various incentives and situations in the cryptocurrency markets. The results of the article describe the main provisions of behavioural finance, which are necessary for an overview of the cryptocurrency market. The impact of the main topics of behavioural finance research is also considered. It should be noted that in the absence of a large amount of data, the study of the cryptocurrency market and the behaviour of participants is mainly a hypothetical assessment, and the empirical aspects of the study are copied from the behavioural finance of the classical market. Considering the cryptocurrency market from the point of view of behavioural finance, the main points of view of different parties were considered: both supporters of cryptocurrency and those who consider this phenomenon to be an economic bubble in a technological wrapper. The information reflecting the main biases of behavioural finance, which relate to both classical markets and cryptocurrency markets, is systematised. The study of cryptocurrencies from the point of view of behavioural finance reflects the practical value in understanding the impact of behavioural factors on price dynamics and investment decisions in cryptocurrency markets

Modeling cryptocurrency market dynamics using machine learning tools

The article analyzes the dynamics of the cryptocurrency market (Bitcoin) using econometric estimation tools based on machine learning models. The forecasting method is improved based on time series decomposition and lagged shifts of financial indicators. An ensemble of short-term forecast models for the Bitcoin exchange rate is built, and its accuracy is analyzed and compared to individual component models. Time series models are used along with calculated financial indicators (ADODS, NATR, TRANGE, ATR, OBV, RSI, ADTV). The absolute deviation of the short-term forecast amounted to $9.5, which is 0.06% of the absolute value.

Digital assets for digital natives: Exploring familiarity and preference for cryptocurrency among millennials and Gen Z

<p>Cryptocurrency has gained significant attention and popularity in recent years, leading to increased awareness and preference among individuals worldwide. This study explores the intertwined concepts of awareness and preference and reasons for buying cryptocurrencies among Chennai city’s Millennials and Gen Z. This study did two things: a comprehensive but detailed systematic literature review on cryptocurrency and then conducted a survey, the study got 252 valid responses. After analysis, it has been observed that majority of the respondents are aware of cryptocurrencies and only a less percentage respondents own cryptocurrency. As individuals learnt about cryptocurrencies, their preference for these digital assets begins to take shape. Decentralized & transparent transactional system and financial inclusion and security & privacy emerge as significant factors driving preference, as individuals seek to escape the constraints of traditional financial systems and exercise direct control over their assets. Additionally, the potential for high returns attracts investors, drawing attention to the volatile but potentially rewarding nature of the cryptocurrency market. Global accessibility & speed and media & publicity are vital in promoting a sustainable and well-informed approach to the adoption and affinity for cryptocurrencies. This study holds the promise of exerting a positive influence on society by enabling better-informed decision-making, fostering greater financial and technological literacy, mitigating risks, and actively contributing to the responsible development of the digital asset industry.<strong></strong></p>

ЦИФРОВА ТРАНСФОРМАЦІЯ БАНКІВСЬКОГО БІЗНЕСУ: СЬОГОДЕННЯ ТА МАЙБУТНЄ

This article delves into the nuances of digital transformation within the realm of banking, prompted by the pervasive global digitization of economies. This phenomenon has profoundly shaped the trajectory of financial technologies, giving rise to innovative banking products. The primary objective of this study is to elucidate the essence of digital transformation and assess its efficacy in shaping the development of the banking sector.The digitization of banking involves the transformation of all associated processes and information. Consequently, the integration of digital technologies into the banking domain necessitates a comprehensive consideration of the needs of three key stakeholders: the consumer, the investor, and the bank itself. The authors conducted an analysis of the regulatory and legal landscape accompanying the digital transformation of the banking sector. The study concludes that the contemporary legal framework governing the use of digital technologies in banking is aligning with current global trends.The digital transformation of the banking industry is observed to manifest in several dimensions, encompassing remote and Internet banking, electronic payments, FinTech and innovation, blockchain and cryptocurrencies, cyber security systems, electronic identification and document circulation, as well as interoperability.The domestic banking system has exhibited noteworthy progress in digitalization in recent times. However, external factors, notably the incursion into Ukraine, have introduced certain adjustments. These include the outflow of intellectual human capital abroad, diminished financial literacy due to population migration, and the closure of bank outlets, particularly affecting territorial communities, especially rural areas, resulting in a loss of connectivity with banks.In light of these observations, it is asserted that future digital transformational endeavours in the banking sector should prioritize enhancing the financial literacy of consumers of banking services. Additionally, there is a need to fortify regulatory frameworks governing the cryptocurrency market in Ukraine and establish unified standards for the regulation and supervision of banks and FinTech companies providing digital financial services.

Crypto market relationships with bric countries' uncertainty – A wavelet-based approach

This study focuses on exploring the relationships between different categories of crypto assets and measures of uncertainty in BRIC countries, specifically examining geopolitical risk (GPR) and economic policy uncertainty (EPU). Our findings indicate that the co-movement of the EPU and GPR indexes with different categories of crypto assets is influenced by factors such as the time period, investment horizons, and the type of event, and that it differs across crypto assets. An overall pattern is observed, suggesting that the crypto market does not act as a hedge against economic policy uncertainties (EPU) but demonstrates a hedging effect against geopolitical risk (GPR). This distinction in hedging effectiveness is influenced by the nature of events (COVID-19 and the Russian invasion of Ukraine), since investors' expectations and perception of risk differ during these events. Furthermore, our analysis shows that stablecoins and memecoins do not exhibit consistent results in relation to GPR and EPU, suggesting that they may not serve as reliable hedging instruments against geopolitical risks or economic policy uncertainties in the BRIC countries. Our findings carry important implications for investors, portfolio managers, policy makers, and researchers, offering insights into portfolio risk management, regulatory frameworks, and the behavior of the cryptocurrency market in the face of uncertainties.

Potential of the Crypto Market in China

This paper provides an overview of cryptocurrencies, their current status in China and Hong Kong, a prediction of their impact on Chinese enterprises and financial markets, and describes the impact of government policies. It also discusses suggestions for changing the regulatory paradigm of digital cryptocurrencies in China. The study aims to explore the best policy direction for the development of the cryptocurrency market in mainland China. Key points include the strict stance of the Chinese government towards cryptocurrencies, the growing interest in cryptocurrencies in Hong Kong, and the impact of government policies on the cryptocurrency market in both regions. It also highlights the need for China to adjust its policies to benefit from the development of digital technology. Additionally, it suggests policy recommendations for the future development of the cryptocurrency market in mainland China, such as prudent supervision, technology-driven supervision, and strengthening the security requirements of digital cryptocurrency service providers.

Threat of Intervention in Cryptocurrency Market: West Side Story of Bitcoin and Ripple

Threat of Intervention in Cryptocurrency Market: West Side Story of Bitcoin and Ripple

Bitcoin volatility in bull vs. bear market-insights from analyzing on-chain metrics and Twitter posts.

Cryptocurrencies have emerged as a popular investment vehicle, prompting numerous efforts to predict market trends and identify metrics that signal periods of volatility. One promising approach involves leveraging on-chain data, which is unique to cryptocurrencies. On-chain data, extracted directly from the blockchain, provides valuable information, such as the hash rate, total transactions, or the total number of addresses that hold a specified amount of cryptocurrency. Some studies have also explored the relationship between social media sentiment and Bitcoin, using data from platforms such as Twitter and Google Trends. However, the quality of Twitter sentiment analysis has been lackluster due to suboptimal extraction techniques. This research proposes a novel approach that combines a superior sentiment analysis technique with various on-chain metrics to improve predictions using a deep learning architecture based on long-short term memory (LSTM). The proposed model predicts outcomes for multiple time horizons, ranging from one day to 14 days, and outperforms the Martingale (random walk) approach by over 9%, as measured by the mean absolute percentage error metric, as well as recent results reported in literature. To the best of our knowledge, this study may be among the first to employ this combination of techniques to improve cryptocurrency market prediction.

Asymmetric link between energy market and crypto market

This paper examines the nonlinear (NL) asymmetric long- and short-run interconnections between energy indices (S&P 500-ENERGY, MSCI-CHINA, and MSCI-WORLD) and the crypto (Bitcoin) market. The daily data have been used from January 1, 2013, to February 24, 2023, archived from the wind database. We use a nonlinear autoregressive distributed lag (NARDL) framework for the research to be empirical. The NARDL test reveals the presence of a nonlinear asymmetric relationship, both in the long-run and short-run, among the MSCI-China, MSCI-World, S&P500-ENERGY indices, and the price of Bitcoin. The S&P 500 energy index and Bitcoin price have an inverse asymmetric connection. The prices of Bitcoin are positively influenced by both positive and negative shifts in the MSCI-CHINA and MSCI-WORLD indices. Overall, this study underscores the growing significance of the cryptocurrency market as a hedge against risks, offering evidence that Bitcoin can be perceived as a safe haven amidst the turbulence of the energy market. This insight holds implications for Bitcoin investors, suggesting its potential as a refuge in times of energy market instability.

The Causal Relationship between Cryptocurrencies and Other Major World Economic Assets: A Granger Causality Test

This study examines the causal relationship between cryptocurrencies and other major world economic assets, such as gold, stocks, oil, and bonds, using both Granger causality and correlation analyses. The study focuses on the period between 2018 and 2022, using a vector autoregressive model (VAR) to analyze data on cryptocurrencies and other major world economic assets, which collectively represent over 90% of the market during the observed period. Results show that correlation clearly identifies causal interdependency between cryptocurrencies and other major world economic assets and that the variation in cryptocurrencies increasingly explains other major world economic assets. The results reveal that there is Granger causality between the cryptocurrencies (Tether, USD Coin, and Binance USD) and the other major world economic assets (BOND, SP500, and GOLD). Additionally, the study finds evidence that market inefficiency in the cryptocurrency market increased between 2018 and 2022. The findings suggest that the properties of the cryptocurrency market are highly dynamic and that researchers should be hesitant to generalize the market properties observed during idiosyncratic periods. The relevant information is swiftly reflected in asset prices when investors are more interested in a news event, increasing volatility. Strong evidence suggests that volatility spill overs increase sharply at this time. The structure of these markets frequently changes, and a large number of cryptocurrencies appear and disappear every day.

Extreme return connectedness between renewable energy tokens and renewable energy stock markets: evidence from a quantile-based analysis.

Renewable energy tokens allow investors to diversify their portfolios while supporting renewable energy projects. While renewable energy tokens and renewable energy stocks are different investment instruments with different characteristics, there can be important links between them, as both offer the opportunity to invest in renewable energy sources. The aim of the study is to investigate the return connectedness between renewable energy tokens and renewable energy stock indices. EWT, PWR, SNC, and WPR are used to represent renewable energy tokens, and WilderHill Clean Energy Index, S&P Global Clean Energy Index, and European Renewable Energy Index indices are used to represent renewable energy stock markets. In the study, return connectedness between assets is investigated with the QVAR model. The return spillovers between renewable energy tokens and renewable energy stock indices show that they vary under different market conditions. Under normal market conditions, renewable energy tokens and renewable energy indices are significantly unconnected. During extreme market downturns and upturns, the return interconnectedness among these assets significantly increases. Moreover, the return spillovers between renewable energy tokens and renewable energy stock indices are asymmetric and time-varying. The return connectedness between these assets is affected by extreme events such as COVID-19, the Russia-Ukraine war, and the collapse of the cryptocurrency market. Since the net return spillover relationships between assets are time-varying and under different market conditions, investors and portfolio managers should constantly review the net return spillovers between assets and adjust their positions accordingly.

Cryptocurrency Returns Over a Decade: Breaks, Trend Breaks and Outliers

This study finds breaks, trend breaks, and outliers in the last decade returns of five cryptocurrencies Bitcoin, Ethereum, Litecoin, Tether USD, and Ripple that experienced frequent changes. The study uses the indicator saturation (IS) approach to simultaneously identify breaks, trend breaks, and outliers in these returns to gain a deeper understanding in their dynamics. The study found that monthly, weekly and daily breaks existed in these returns as well as trend breaks, and outliers mostly during the market peaks in 2017, 2018, 2020, and 2021 that can be attributed to a number of things, such as the global Covid-19 pandemic in 2020, the 2021 crypto crackdown in China, the 2020 price halving of Bitcoin, and the 2017–2018 initial coin offering (ICO) boom. These returns also have common break segments and outliers. The application of IS technique to cryptocurrencies and simultaneous detection of market breaks, trend breaks, and outliers makes this study unique. This study is limited to considering only returns of five digital coins. These results may help traders, investors, and financial analysts modify their tactics and risk-management techniques to deal with the complexity of the cryptocurrency market.

The Investor Behaviour, Risk Perception and Expectations on Cryptocurrency Markets

The financial sector, which has sparked increasing organizational and scientific interest in recent years, plays a vital role in the Turkish economy. After enduring multiple economic downturns, consumers have become more cautious when considering financial investments, making it challenging for financial institutions to formulate effective marketing strategies. This study aims to shed light on investor behavior in Tukish markets. The results of two surveys are examined: the first conducted in the final quarter of 2022, and the second in the first quarter of 2023. This article delves into various variables, including stress levels, portfolio holding times, investment choices, and attention to cryptocurrency markets. The methodology employs the Mann-Whitney U test, Cronbach's Alpha, Kolmogorov-Smirnov, and Shapiro-Wilk normality tests. The findings from the two surveys are compared. Based on the analysis results, it can be inferred that respondents' investment preferences and risk tolerance have evolved over time. The results demonstrate a spectrum of portfolio diversification tendencies.

European regulation of the cryptocurrency market and implementation in Ukraine

The world economy is at the initial stage of introducing modern digital technologies. Currently, there is also a permanent process of awareness by the world community of the fact that the digital economy, special finance and Internet trade will have a decisive importance on a global scale in the future. Therefore, the article is devoted to the study of the international practice of legal regulation of cryptocurrency circulation with an analysis of the current situation in Ukraine. The relevance of this direction of research is determined not only by the spread of popularity of virtual currencies, but also by the recent adoption of the European MiSA regulation, which was taken as a basis for the specialized Law. It was established that our state has prospects for the development of a competitive market, which in turn has a positive perspective for the development of the economy under martial law.

Testing the Applicability of the Technical Trading Strategy in the Cryptocurrency Market

Testing the Applicability of the Technical Trading Strategy in the Cryptocurrency Market

Financial Behaviour, Financial Self Efficacy and Intention to Invest in Cryptocurrency

The Theory of Planned Behaviour is used in this study to investigate the investment intentions of young potential investors in Indonesia. As supplementary dimensions, financial self-efficacy, risk-taking proclivity, and inclination for innovation are offered. A questionnaire-based survey was utilised to collect responses from 276 potential investors, and AMOS and SPSS were used to identify correlations between the components. Financial self-efficacy appears to play a dual function in the association between personality characteristics and investment intention, according to the data. The study only looks at investing intentions, not actual investment behaviour or demographic characteristics. The findings might help financial service providers create "behavioural portfolios" based on their clients' personality attributes, fostering financial confidence in individuals. This research is one of the first efforts in the Indonesian cryptocurrency market to introduce financial self-efficacy as a dual construct within the TPB framework.

Block Chain Technology and Internet of Things to Protect Financial Transactions in Crypto Currency Market

The integration of block chain and Internet of Things aims to address security concerns through a multifaceted approach. Block chain's inherent characteristics, such as decentralization and cryptographic hashing, contribute to the prevention of fraud and unauthorized access. Internet of Things devices, ranging from sensors to smart devices, play a pivotal role by providing real-time data that can be securely recorded on the block chain. This enables stakeholders to access timely and accurate information, enhancing decision-making processes. This article explores the synergies between block chain technology and the Internet of Things to bolster the security of financial transactions within the crypto currency market. With the growing prominence of digital assets, ensuring the integrity and confidentiality of transactions has become paramount. Block chain’s decentralized and immutable ledger capabilities provide a robust foundation, while IoT's real-time data generation adds a layer of transparency and efficiency. However, this integration is not without its challenges. The article delves into scalability issues, interoperability challenges, and the need for standardized protocols. Privacy concerns surrounding sensitive financial data and the intricacies of identity management in a decentralized environment are also addressed.

Time Varying Dependences Between Real Estate Crypto, Real Estate and Crypto Returns

In recent years, blockchain-based platforms such as Propy and Elysia have emerged that apply tokenization to commercial real estate. They issue real estate crypto coins, which represent a hybrid between real estate and cryptocurrencies. We investigate the return dependence of two real estate crypto coins on (1) the real estate market, as represented by the equity REIT market due to the availability of daily data, and (2) the cryptocurrency market to assess whether real estate crypto coins behave like real estate or cryptocurrencies. Using the time-varying optimal copula (TVOC) approach, we find that the dependence of real estate crypto coins on the real estate and cryptocurrency markets has changed over time. While real estate crypto coins primarily provided exposure to the cryptocurrency market in their early years, our results suggest that real estate crypto coins have become more similar to real estate as they matured. Our findings have portfolio implications for institutional investors, as they suggest that real estate crypto coins represent another asset class to be included in the real estate category.