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Cryptocurrencies (CCs) have risen rapidly in market capitalization over the last years. Despite striking price volatility, their high average returns have drawn attention to CCs as alternative investment assets for portfolio and risk…

Portfolio Management · Quantitative Finance 2020-09-18 Alla Petukhina , Simon Trimborn , Wolfgang Karl Härdle , Hermann Elendner

Blockchain technology and, in particular, blockchain-based cryptocurrencies offer us information that has never been seen before in the financial world. In contrast to fiat currencies, all transactions of crypto-currencies and crypto-tokens…

Social and Information Networks · Computer Science 2019-12-24 Yitao Li , Umar Islambekov , Cuneyt Akcora , Ekaterina Smirnova , Yulia R. Gel , Murat Kantarcioglu

AI and data driven solutions have been applied to different fields and achieved outperforming and promising results. In this research work we apply k-Nearest Neighbours, eXtreme Gradient Boosting and Random Forest classifiers for detecting…

Trading and Market Microstructure · Quantitative Finance 2022-06-14 Mohsen Asgari , Hossein Khasteh

Ethereum has emerged as a dynamic platform for exchanging cryptocurrency tokens. While token crowdsales cannot simultaneously guarantee buyers both certainty of valuation and certainty of participation, we show that if each token buyer…

Theoretical Economics · Economics 2019-08-14 Jason Teutsch , Vitalik Buterin , Christopher Brown

We quantify Non Fungible Token (NFT) rarity and investigate how it impacts market behaviour by analysing a dataset of 3.7M transactions collected between January 2018 and June 2022, involving 1.4M NFTs distributed across 410 collections.…

Statistical Finance · Quantitative Finance 2024-05-24 Amin Mekacher , Alberto Bracci , Matthieu Nadini , Mauro Martino , Laura Alessandretti , Luca Maria Aiello , Andrea Baronchelli

The continuing expansion of the blockchain ecosystems has attracted much attention from the research community. However, although a large number of research studies have been proposed to understand the diverse characteristics of individual…

Cryptography and Security · Computer Science 2021-10-15 Ningyu He , Weihang Su , Zhou Yu , Xinyu Liu , Fengyi Zhao , Haoyu Wang , Xiapu Luo , Gareth Tyson , Lei Wu , Yao Guo

The cryptocurrency market is highly volatile compared to traditional financial markets. Hence, forecasting its volatility is crucial for risk management. In this paper, we investigate CryptoQuant data (e.g. on-chain analytics, exchange and…

Trading and Market Microstructure · Quantitative Finance 2024-06-13 Dorien Herremans , Kah Wee Low

Cryptocurrencies have become a trendy topic recently, primarily due to their disruptive potential and reports of unprecedented returns. In addition, academics increasingly acknowledge the predictive power of Social Media in many fields and,…

Statistical Finance · Quantitative Finance 2022-10-04 Federico D'Amario , Milos Ciganovic

For the pedestrian observer, financial markets look completely random with erratic and uncontrollable behavior. To a large extend, this is correct. At first approximation the difference between real price changes and the random walk model…

Statistical Finance · Quantitative Finance 2011-08-22 Laurent Schoeffel

Extreme volatility, nonlinear dependencies, and systemic fragility are characteristics of cryptocurrency markets. The assumptions of normality and centralized control in traditional financial risk models frequently cause them to miss these…

Risk Management · Quantitative Finance 2025-07-15 Kiarash Firouzi

The rise in adoption of cryptoassets has brought many new and inexperienced investors in the cryptocurrency space. These investors can be disproportionally influenced by information they receive online, and particularly from social media.…

Human-Computer Interaction · Computer Science 2023-06-26 Karolis Zilius , Tasos Spiliotopoulos , Aad van Moorsel

In recent literature it is claimed that BitCoin price behaves more likely to a volatile stock asset than a currency and that changes in its price are influenced by sentiment about the BitCoin system itself; in Kristoufek [10] the author…

Mathematical Finance · Quantitative Finance 2019-09-23 Alessandra Cretarola , Gianna Figà-Talamanca , Marco Patacca

Blockchain technology, which has been known by mostly small technological circles up until recently, is bursting throughout the globe, with a potential economic and social impact that could fundamentally alter traditional financial and…

Social and Information Networks · Computer Science 2018-05-31 Shahar Somin , Goren Gordon , Yaniv Altshuler

This study examines whether the efficiency of cryptocurrency markets (Bitcoin and Ethereum) evolve over time based on Lo's (2004) adaptive market hypothesis (AMH). In particular, we measure the degree of market efficiency using a…

Statistical Finance · Quantitative Finance 2020-07-08 Akihiko Noda

This paper shows that jumps in financial asset prices are often erroneously identified and are, in fact, rare events accounting for a very small proportion of the total price variation. We apply new econometric techniques to a comprehensive…

Econometrics · Economics 2026-02-12 Kim Christensen , Roel C. A. Oomen , Mark Podolskij

We apply the formalism of the continuous time random walk to the study of financial data. The entire distribution of prices can be obtained once two auxiliary densities are known. These are the probability densities for the pausing time…

Statistical Mechanics · Physics 2008-12-10 Jaume Masoliver , Miquel Montero , George H. Weiss

In May 2022, an apparent speculative attack, followed by market panic, led to the precipitous downfall of UST, one of the most popular stablecoins at that time. However, UST is not the only stablecoin to have been depegged in the past.…

Computer Science and Game Theory · Computer Science 2023-07-26 Yujin Kwon , Kornrapat Pongmala , Kaihua Qin , Ariah Klages-Mundt , Philipp Jovanovic , Christine Parlour , Arthur Gervais , Dawn Song

The rapid spread of information over social media influences quantitative trading and investments. The growing popularity of speculative trading of highly volatile assets such as cryptocurrencies and meme stocks presents a fresh challenge…

Computation and Language · Computer Science 2022-06-14 Ramit Sawhney , Shivam Agarwal , Vivek Mittal , Paolo Rosso , Vikram Nanda , Sudheer Chava

The mining of bitcoin is modeled using system dynamics, showing that the past evolution of the network hash rate can be explained to a large extent by an efficient market hypothesis applied to the mining of blocks. The possibility of a…

Cryptography and Security · Computer Science 2020-04-21 Davide Lasi , Lukas Saul

High-frequency trading (HFT) accounts for almost half of equity trading volume, yet it is not identified in public data. We develop novel data-driven measures of HFT activity that separate strategies that supply and demand liquidity. We…

Computational Finance · Quantitative Finance 2025-03-24 G. Ibikunle , B. Moews , D. Muravyev , K. Rzayev