Cryptocurrency prices are not driven by any economic factors but solely by the sentiment of investors, according to research conducted at Warwick Business School.
In a paper entitled Cryptocurrencies as an asset class: An empirical assessment, assistant professor of finance at Warwick Business School Daniele Bianchi said there was no correlation between economic indicators and cryptocurrencies. The research, which studied the weekly trading patterns of 14 of the largest cryptocurrencies between April 2016 and September 2017, concluded the price was entirely influenced by past returns and the "hype" of investors as they watch the prices move. Bianchi said cryptocurrencies were not like normal currencies where a country's economy influenced the p...
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