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  • Thumbnail for AN ANALYSIS ON BITCOIN VOLATILITY: EXAMINING THE DRIVERS BEHIND BITCOIN PRICE
    AN ANALYSIS ON BITCOIN VOLATILITY: EXAMINING THE DRIVERS BEHIND BITCOIN PRICE by Tran, Quang Vinh

    Bitcoin was introduced after 2008 financial crisis as a more secure form of currency, however its volatility within the past decade has shown that Bitcoin’s price fluctuation can be caused by multiple factors. This study aims to examine the drivers that caused Bitcoin’s price to fluctuate as well as predict how these drivers impact Bitcoin’s future. This study conducts an OLS regression model analysis to test for a correlation between Bitcoin’s historical price and historical prices of Ripple (XRP), Ethereum (ETH), the U.S. Dollar (USD), Gold (by the ounce), Google Trends data, as well as a regulation &policy timeline. What was concluded is that all these chosen variables, with the exception of Gold, proved to have a statistically significant correlation with Bitcoin price.Furthermore, both federal and state regulations also played a significant role in drivingBitcoin prices.