Bitcoin: A life in crises
Statistical Finance
2023-04-21 v1 Risk Management
Abstract
In this study, we investigate the BTC price time-series (17 August 2010-27 June 2021) and show that the 2017 pricing episode is not unique. We describe at least ten new events, which occurred since 2010-2011 and span more than five orders of price magnitudes (US 60k). We find that those events have a similar duration of approx. 50-100 days. Although we are not able to predict times of a price peak, we however succeed to approximate the BTC price evolution using a function that is similar to a Fibonacci sequence. Finally, we complete a comparison with other types of financial instruments (equities, currencies, gold) which suggests that BTC may be classified as an illiquid asset.
Keywords
Cite
@article{arxiv.2304.09939,
title = {Bitcoin: A life in crises},
author = {Jevgeni Tarassov and Nicolas Houlié},
journal= {arXiv preprint arXiv:2304.09939},
year = {2023}
}