Cryptocurrency prices are not driven by any economic factors but solely by the sentiment of investors, according to research conducted at Warwick Business School.
In a paper entitled Cryptocurrencies as an asset class: An empirical assessment, assistant professor of finance at Warwick Business School Daniele Bianchi said there was no correlation between economic indicators and cryptocurrencies. The research, which studied the weekly trading patterns of 14 of the largest cryptocurrencies between April 2016 and September 2017, concluded the price was entirely influenced by past returns and the "hype" of investors as they watch the prices move. Bianchi said cryptocurrencies were not like normal currencies where a country's economy influenced the p...
To continue reading this article...
Join Investment Week for free
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes