According to Coindesk August 10 report, a recent study by the National Bureau of Economic Research (NBER) showed that the cryptocurrency market is different from traditional financial markets, and its change depends on the type of attention they receive.
Use Google search to predict the rise in bitcoin prices
The author of the study, Yakun Liu and Aleh Tsyvinski, economists at Yale University, said that contrary to public opinion, the market does not look at cryptocurrencies as it does for standard asset classes.
The study used CoinDesk Bitcoin, Ethereum and XRP price trackers as sources of market data. The study also used a series of price data within a multi-year timeframe and used a standard financial pricing model called CAPM to compare actual earnings with expected returns.
Liu and Tsyvinski also compare the rate of return on cryptocurrencies with macroeconomic factors such as metals such as the euro, metals such as gold, and consumption growth.
It’s worth noting that this study combines consumer activity data on social media sites such as Google’s search forums and Twitter. The increase in the standard deviation of search keywords (such as “bitcoin”) indicates that in the next few weeks. The price of the token will increase slightly.
According to the report, on average, an increase in the single standard deviation of keyword searches would result in a price increase of 2.75%, and an increase in the standard deviation of the number of Twitter posts would result in a 2.5% increase in bitcoin prices.
According to an ostrich blockchain reported on August 9, researchers at Yale University proposed an encryption-to-price prediction system.
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