How much of Bitcoin’s price is driven by macroeconomic factors?
According to a study by Redalyc over a three-year period 2017 - 2019, around 95% of the price movement (a correlation co-efficient ‘R’ of 0.9465) can be attributed to five macro-finacial and liquidity measures.
The study suggests that Bitcoin's price is influenced by a variety of macroeconomic factors including the amount of money in circulation, the performance of the stock market, expected market volatility, the price of gold, and the strength of the US dollar.
Whist it's important to note that these are just correlations, and the study doesn't prove that these factors directly cause changes in Bitcoin's price, it does provide some valuable insights into how Bitcoin interacts with the broader economy.
#asknostr
josswilbraham / Joss
npub1cv…ut995
2024-06-07 10:56:23
Author Public Key
npub1cvq7p3zwtqym3xhxuj5cc2xa3hdk2zjnx2p64epjs06tmzx3zzpq5ut995Published at
2024-06-07 10:56:23Event JSON
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"content": "How much of Bitcoin’s price is driven by macroeconomic factors?\n\nAccording to a study by Redalyc over a three-year period 2017 - 2019, around 95% of the price movement (a correlation co-efficient ‘R’ of 0.9465) can be attributed to five macro-finacial and liquidity measures.\n\nThe study suggests that Bitcoin's price is influenced by a variety of macroeconomic factors including the amount of money in circulation, the performance of the stock market, expected market volatility, the price of gold, and the strength of the US dollar. \n\nWhist it's important to note that these are just correlations, and the study doesn't prove that these factors directly cause changes in Bitcoin's price, it does provide some valuable insights into how Bitcoin interacts with the broader economy.\n#asknostr\n",
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