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Cryptocurrency; market price determinants

Nygren, Bengt Lennart Charles Adam Alessandro LU (2018) NEKH01 20182
Department of Economics
Abstract (Swedish)
This study focus on the six largest minable cryptocurrencies: Bitcoin, Bitcoin Cash, Litecoin, Ethereum, Monero and DASH, and puts forward determinants that explain large parts of the price value formation in the markets. This is done by Ordinary Least Squares linear regression with intent to validate or question previous research regarding explanatory factors driving the market price. These factors are divided into three groups: system variables, macroeconomic variables and a social variable. The regression is done with the “all possible regressions” method and then validated and optimized thru several statistics. The results indicate that a high percentage of the price formation can be explained with relatively few variables. The... (More)
This study focus on the six largest minable cryptocurrencies: Bitcoin, Bitcoin Cash, Litecoin, Ethereum, Monero and DASH, and puts forward determinants that explain large parts of the price value formation in the markets. This is done by Ordinary Least Squares linear regression with intent to validate or question previous research regarding explanatory factors driving the market price. These factors are divided into three groups: system variables, macroeconomic variables and a social variable. The regression is done with the “all possible regressions” method and then validated and optimized thru several statistics. The results indicate that a high percentage of the price formation can be explained with relatively few variables. The econometric model’s heavy emphasis on the system variables suggests that relative rates of production for given level of mining effort are paramount for the price formation. (Less)
Please use this url to cite or link to this publication:
author
Nygren, Bengt Lennart Charles Adam Alessandro LU
supervisor
organization
course
NEKH01 20182
year
type
M2 - Bachelor Degree
subject
keywords
Cryptocurrency, Blockchain, Market price determinants, Ordinary least squares regression
language
English
id
8967338
date added to LUP
2019-02-15 14:48:09
date last changed
2019-02-15 14:48:09
@misc{8967338,
  abstract     = {{This study focus on the six largest minable cryptocurrencies: Bitcoin, Bitcoin Cash, Litecoin, Ethereum, Monero and DASH, and puts forward determinants that explain large parts of the price value formation in the markets. This is done by Ordinary Least Squares linear regression with intent to validate or question previous research regarding explanatory factors driving the market price. These factors are divided into three groups: system variables, macroeconomic variables and a social variable. The regression is done with the “all possible regressions” method and then validated and optimized thru several statistics. The results indicate that a high percentage of the price formation can be explained with relatively few variables. The econometric model’s heavy emphasis on the system variables suggests that relative rates of production for given level of mining effort are paramount for the price formation.}},
  author       = {{Nygren, Bengt Lennart Charles Adam Alessandro}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{Cryptocurrency; market price determinants}},
  year         = {{2018}},
}