Author(s)

Hongzhe Wen, Yochanan Shachmurove

Corresponding Author

Yochanan Shachmurove

ABSTRACT

This paper analyzes the dynamic relationships among 15 cryptocurrencies and other financial instruments as well as macroeconomic variables, such as stock market indices, interest rates and exchange rates. Cryptocurrencies, decentralized digital tokens, are based on blockchain technologies. Participants in financial transactions in these markets avoid the use of exchange intermediaries. These markets are highly volatile. Research indicates that volume and market capitalization is closely related to the price of the cryptocurrencies. In addition to that, foreign exchange rates and the stock markets have a large contribution to the volatility of the cryptocurrency market.

KEYWORDS

Bitcoin, Cryptocurrency, Digital Currencies, Blockchain, Ethereum, Exchange Rates, Gold, Interest Rates, Consumer Price Index, Producer Price Index, Stock Markets, Industrial Production Index, China, USA