Internal Code: 1IBFA
The goal of the assignment is to test weather Bitcoin follows market efficiency hypothesis. We want to analyze weather the BTC market is weak, semi strong or strong. You need to run various tests to determine that using data of past 5 years Bitcoin to USD prices. Task:
Does Bitcoin Follow The Hypothesis of Efficient Market | Economics Assignment Help
Bitcoin has emerged as phenomenon of the financial markets as the currency without any central authority. Recent events of Bitcoin has risen question about its behavior and there is crucial question if the price of Bitcoin follows hypothesis of efficient markets. In this paper, there are introduced the main features of Bitcoin and analyzed its price behavior. We found out that price of the most famous cryptocurrency Bitcoin follows the hypothesis of efficient markets and it immediately react on publicly announce information. Furthermore, Bitcoin can be seen as standard economic good that is priced by interaction of supply and demand on the market. These factors can be driven by macro financial development or by speculative investors, but there weren’t found any significant impact of these factors on price of Bitcoin.
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