Statistical Analysis to Reveal Factors Affecting Cryptocurrency Prices in Commodity Futures Trading and Stock Market

Adhi Dharma Wibawa, M. Sadewa Wicaksana, Yuri Pamungkas

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

Cryptocurrency has become one of the most widely used digital investment instruments worldwide. In simple terms, cryptocurrency is a digital currency. Cryptocurrencies are not available in physical forms, such as coins or cash, but are commonly used worldwide. In cryptocurrency, everything is completely virtual. Even so, this digital money has a fairly high value. In 2017, its market capitalization reached 18 billion USD. In addition, cryptocurrencies carry a very high risk due to the problem of very fast and irregular price changes. Therefore, a study on the link between cryptocurrency and other commodities is required. Thus, data with a strong correlation may be used to judge cryptocurrency transactions. As a result, in this study, we employ the Pearson Correlation to determine the association of cryptocurrencies with various datasets, including gold, oil and natural gas, and the Nasdaq stock market. Consequently, the Nasdaq stock market dataset outperforms the others in terms of correlation, with the greatest value on the Google index of 0.91 and 0.92 on bitcoin and Ethereum. Regarding oil and natural gas, Ethereum has the greatest value versus crude oil (at 0.74), while bitcoin is at 0.61.

Original languageEnglish
Title of host publicationICEEIE 2023 - International Conference on Electrical, Electronics and Information Engineering
PublisherInstitute of Electrical and Electronics Engineers Inc.
ISBN (Electronic)9798350340501
DOIs
Publication statusPublished - 2023
Event8th International Conference on Electrical, Electronics and Information Engineering, ICEEIE 2023 - Malang City, Indonesia
Duration: 28 Sept 202329 Sept 2023

Publication series

NameICEEIE 2023 - International Conference on Electrical, Electronics and Information Engineering

Conference

Conference8th International Conference on Electrical, Electronics and Information Engineering, ICEEIE 2023
Country/TerritoryIndonesia
CityMalang City
Period28/09/2329/09/23

Keywords

  • Bitcoin
  • Cryptocurrency
  • Gold
  • Nasdaq Stock Market
  • Oil and Gas

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