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"Code is law" is the funding principle of cryptocurrencies. The security, transferability, availability and other properties of a crypto-asset are determined by the code through which it is created. If code is open source, as it happens for…

Statistical Finance · Quantitative Finance 2020-12-23 Lorenzo Lucchini , Laura Alessandretti , Bruno Lepri , Angela Gallo , Andrea Baronchelli

As the pioneer of blockchain technology, Bitcoin is the most popular cryptocurrency to date. Given its dramatic price spikes (and crashes) along with the never-ending news from SEC regulations to security breaches, there seems to be a lack…

Computers and Society · Computer Science 2020-06-04 Anthony Luo , Dianxiang Xu

We analyze structure of the world foreign currency exchange (FX) market viewed as a network of interacting currencies. We analyze daily time series of FX data for a set of 63 currencies, including gold, silver and platinum. We group…

Statistical Finance · Quantitative Finance 2009-06-03 Jaroslaw Kwapien , Sylwia Gworek , Stanislaw Drozdz , Andrzej Gorski

Financial markets are of much interest to researchers due to their dynamic and stochastic nature. With their relations to world populations, global economies and asset valuations, understanding, identifying and forecasting trends and…

Statistical Finance · Quantitative Finance 2021-08-13 Peter Akioyamen , Yi Zhou Tang , Hussien Hussien

To investigate the universal structure of interactions in financial dynamics, we analyze the cross-correlation matrix C of price returns of the Chinese stock market, in comparison with those of the American and Indian stock markets. As an…

Statistical Finance · Quantitative Finance 2012-02-03 J. Shen , B. Zheng

Correlations in complex systems are often obscured by nonstationarity, long-range memory, and heavy-tailed fluctuations, which limit the usefulness of traditional covariance-based analyses. To address these challenges, we construct scale…

Statistical Finance · Quantitative Finance 2025-12-09 Stanisław Drożdż , Paweł Jarosz , Jarosław Kwapień , Maria Skupień , Marcin Wątorek

The economical world consists of a highly interconnected and interdependent network of firms. Here we develop temporal and structural network tools to analyze the state of the economy. Our analysis indicates that a strong clustering can be…

We investigate the relationship between underlying blockchain mechanism of cryptocurrencies and its distributional characteristics. In addition to price, we emphasise on using actual block size and block time as the operational features of…

Cryptography and Security · Computer Science 2021-08-25 Min-Bin Lin , Kainat Khowaja , Cathy Yi-Hsuan Chen , Wolfgang Karl Härdle

In recent years, cryptocurrencies have gone from an obscure niche to a prominent place, with investment in these assets becoming increasingly popular. However, cryptocurrencies carry a high risk due to their high volatility. In this paper,…

Portfolio Management · Quantitative Finance 2021-09-02 Natalia A. Van Heerden , Juan B. Cabral , Nadia Luczywo

We empirically verify that the market capitalisations of coins and tokens in the cryptocurrency universe follow power-law distributions with significantly different values, with the tail exponent falling between 0.5 and 0.7 for coins, and…

Physics and Society · Physics 2019-04-11 Ke Wu , Spencer Wheatley , Didier Sornette

This paper presents a large-scale analysis of the cryptocurrency community on Reddit, shedding light on the intricate relationship between the evolution of their activity, emotional dynamics, and price movements. We analyze over 130M posts…

Cryptography and Security · Computer Science 2023-12-15 Kostantinos Papadamou , Jay Patel , Jeremy Blackburn , Philipp Jovanovic , Emiliano De Cristofaro

Time series forecasting is a key tool in financial markets, helping to predict asset prices and guide investment decisions. In highly volatile markets, such as cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH), forecasting becomes more…

Trading and Market Microstructure · Quantitative Finance 2026-02-17 Mabsur Fatin Bin Hossain , Lubna Zahan Lamia , Md Mahmudur Rahman , Md Mosaddek Khan

Cryptocurrencies gain trust in users by publicly disclosing the full creation and transaction history. In return, the transaction history faithfully records the whole spectrum of cryptocurrency user behaviors. This article analyzes and…

Cryptography and Security · Computer Science 2020-10-05 Xiao Fan Liu , Xin-Jian Jiang , Si-Hao Liu , Chi Kong Tse

Cryptocurrencies (CCs) become more interesting for institutional investors' strategic asset allocation and will be a fixed component of professional portfolios in future. This asset class differs from established assets especially in terms…

Portfolio Management · Quantitative Finance 2022-05-25 Christoph J. Börner , Ingo Hoffmann , Jonas Krettek , Lars M. Kürzinger , Tim Schmitz

This letter explores the behavior of conditional correlations among main cryptocurrencies, stock and bond indices, and gold, using a generalized DCC class model. From a portfolio management point of view, asset correlation is a key metric…

Statistical Finance · Quantitative Finance 2019-02-28 Nektarios Aslanidis , Aurelio F. Bariviera , Oscar Martinez-Ibañez

The world of cryptocurrency is not transparent enough though it was established for innate transparent tracking of capital flows. The most contributing factor is the violation of securities laws and scam in Initial Coin Offering (ICO) which…

General Finance · Quantitative Finance 2018-09-11 Sheikh Rabiul Islam

The integration and innovation of finance and technology have gradually transformed the financial system into a complex one. Analyses of the causesd of abnormal fluctuations in the financial market to extract early warning indicators…

Risk Management · Quantitative Finance 2024-03-20 Shige Peng , Shuzhen Yang , Wenqing Zhang

The measured correlations of financial time series in subsequent epochs change considerably as a function of time. When studying the whole correlation matrices, quasi-stationary patterns, referred to as market states, are seen by applying…

Statistical Finance · Quantitative Finance 2020-11-03 Anton J. Heckens , Sebastian M. Krause , Thomas Guhr

Multifractality is a concept that helps compactly grasping the most essential features of the financial dynamics. In its fully developed form, this concept applies to essentially all mature financial markets and even to more liquid…

Statistical Finance · Quantitative Finance 2024-11-15 Marcin Wątorek , Marcin Królczyk , Jarosław Kwapień , Tomasz Stanisz , Stanisław Drożdż

A financial system contains many elements networked by their relationships. Extensive works show that topological structure of the network stores rich information on evolutionary behaviors of the system such as early warning signals of…

Statistical Finance · Quantitative Finance 2018-05-09 Li Zhou , Lu Qiu , Changgui Gu , Huijie Yang