Researchers from the Illinois Institute of Technology have identified blockchain technology, investor sentiment, and economic stress levels as significant predictors of bitcoin returns. The study analyzed 25 information variables under categories such as macroeconomics, blockchain technology, other assets, stress level, and investor sentiment using predictive analytics techniques and dimension-reduction models on data from January 2011 to January 2020. The researchers found that bitcoin is detached from economic fundamentals and may not effectively serve as a diversifier or safe-haven asset. Additionally, they reported that returns on commodities, securities, and other assets do not predict bitcoin returns well.
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