DOES INTEREST RATE ANNOUNCEMENT OF THE USE AFFECT BITCOIN PRICE?

Home Page
About
Submit A Journal
Submit A Conference
Submit Paper/Book
- Submit a Preprint
- Submit a Book
Contact

International Congress on Economics, Finance & Energy (EFE)
EFE2022 Book of Proceedings
DOES INTEREST RATE ANNOUNCEMENT OF THE USE AFFECT BITCOIN PRICE?

DOES INTEREST RATE ANNOUNCEMENT OF THE USE AFFECT BITCOIN PRICE?

Authors : Özkan HAYKIR, İbrahim YAĞLI

Pages : 495-505

View : 82 | Download : 30

Publication Date : 2022-12-01

Abstract :In this study, we investigate the impact of the interest rate decision of FOMC on Bitcoin price. We select three interest rate changes (increase, stable, and decrease) between the period 2018 and 2020. We implement an event study methodology to capture the effect of the announcement of interest rate on Bitcoin price. We obtain the interest rate announcement dates from the Federal Reserve Bank of St. Louis, and the Bitcoin price from investing.com. We use the market-based model to estimate the abnormal return in our analysis. We use -3 to -90 days for estimation windows to calculate the abnormal return while -2 to +2 for event windows. The empirical findings show that there is no significant abnormal return during the event window periods.
Keywords : FOMC, Event Study, Bitcoin, Cryptocurrency, Interest Rate

ORIGINAL PAPER URL

* There may have been changes in the journal, article,conference, book, preprint etc. informations. Therefore, it would be appropriate to follow the information on the official page of the source. The information here is shared for informational purposes. IAD is not responsible for incorrect or missing information.