The Economic Effect of Bitcoin Halving Events on the U.S. Capital Market

Mahdy, Dina El

doi:10.5772/intechopen.96791

Cited by 8 publications

(4 citation statements)

References 10 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Therefore, knowledgeable investors follow these transactions and have positions. Mahdy (2021) revealed that negative abnormal returns were obtained in the US stock market on the announcement days of the two halving events in Bitcoin in 2012 and 2016, and therefore the scarce supply of Bitcoin was harmful to the US capital market. Ante (2021) examined the effect of Elon Musk's seven tweets related to Bitcoin and Dogecoin in 2020 and 2021 on the transaction volumes of related cryptocurrencies and revealed that each tweet is associated with abnormal transactions volume.…”

Section: Literature Reviewmentioning

confidence: 99%

The Effect of Positive and Negative Events on Cryptocurrency Prices

Öget¹

2022

Ekonomi, Politika &Amp; Finans Araştırmaları Dergisi

View full text Add to dashboard Cite

In recent years, cryptocurrencies have become a new topic for financial studies. In this study, the effects of positive and negative events related to cryptocurrencies on the prices of related cryptocurrencies were researched using the event study. These events include major listing, delisting and airdrop announcements, and SEC enforcements. As a result of the analysis, 22 significant abnormal return values related to negative events and eight significant abnormal return values related to positive events were determined at 1% significance level within the event window (-5, +10). Therefore, it has been determined that negative events have more effect on cryptocurrencies than positive events. The number of significant cumulative abnormal return values obtained (13 for negative events, three for positive events) also supports these results. The results of the study have crucial implications for investors, centralized cryptocurrency exchanges, and cryptocurrency CEOs. Even after the negative events were announced publicly, pull out of the market will prevent investors from making more losses. In addition, it is recommended that investors sell for profits in case of a rapid high return on the day of the listing announcement. Because it was determined that the prices returned to the equilibrium prices at the closing.

show abstract

Section: Literature Reviewmentioning

confidence: 99%

The Effect of Positive and Negative Events on Cryptocurrency Prices

Öget¹

2022

Ekonomi, Politika &Amp; Finans Araştırmaları Dergisi

View full text Add to dashboard Cite

show abstract

“…These events have a profound impact on the supply of new Bitcoin entering circulation, leading to discussions and debates about their implications for the market (El Mahdy 2021;Masters 2019;Meynkhard 2019;Pan et al 2020;Patel 2021;Ramadhani 2022;Schär 2020). Understanding the dynamics of Bitcoin halving events is crucial for grasping the broader trends in the cryptocurrency landscape and anticipating potential price movements.…”

Section: Introductionmentioning

confidence: 99%

“…The phenomenon of Bitcoin halving has been a subject of extensive research and analysis within the cryptocurrency community, attracting the attention of scholars, economists, and market analysts. Several studies (binance 2024; bitpanda 2024; Chan et al 2023;Chaturved 2024;Coinbase 2024;CoinDCX 2024;Conway 2024;Crawley 2020;Cuthbertson 2024;El Mahdy 2021;ET Spotlight Team 2024;Howcroft and Wilkes 2024;Kuhn 2024;Masters 2019;M'bakob 2024;Meynkhard 2019;Pan et al 2020;Patel 2021;Ramadhani 2022;Samizadeh 2024aSamizadeh , 2024bSchär 2020;Singla et al 2023;Valamontes 2024;Whittaker 2024;ig 2024;Zhao 2024) have explored the implications of halving events on the supply dynamics, price stability, and market sentiment of Bitcoin. Conway (Conway 2024) and many other experts (Coinbase 2024;CoinDCX 2024;Cuthbertson 2024;ET Spotlight Team 2024;Jahanshahloo et al 2023;Meynkhard 2019;Schär 2020) emphasise that the Bitcoin halving is when Bitcoin's mining reward splits in half.…”

Section: Introductionmentioning

confidence: 99%

An Empirical Examination of Bitcoin’s Halving Effects: Assessing Cryptocurrency Sustainability within the Landscape of Financial Technologies

Fabus,

Kremenova,

Stalmasekova

et al. 2024

JRFM

View full text Add to dashboard Cite

This article explores the significance of Bitcoin halving events within the cryptocurrency ecosystem and their impact on market dynamics. While the existing literature addresses the periods before and after Bitcoin halving, as well as financial bubbles, there is an absence of forecasting regarding Bitcoin price in the time after halving. To address this gap and provide predictions of Bitcoin price development, we conducted a rigorous analysis of past halving events in 2012, 2016, and 2020, focusing on Bitcoin price behaviour before and after each occurrence. What interests us is not only the change in the price level of Bitcoins (top and bottom), but also when this turn occurs. Through synthesizing data and trends from previous events, this article aims to uncover patterns and insights that illuminate the impact of Bitcoin halving on market dynamics and sustainability, movement of the price level, the peaks reached, and price troughs. Our approach involved employing methods such as RSI, MACD, and regression analysis. We looked for the relationship between the price of Bitcoin (top and bottom) and the number of days after the halving. We have uncovered a mathematical model, according to which the next peak will be reached 19 months (in November 2025) and the trough 31 months after Bitcoin halving 2024 (in November 2026). Looking towards the future, this study estimates predictions and expectations for the upcoming Bitcoin halving. These discoveries significantly enhance our understanding of Bitcoin’s trajectory and its implications for the finance cryptocurrency market. By offering novel insights into cryptocurrency market dynamics, this study contributes to advancing knowledge in the field and provides valuable information for cryptocurrency markets, investors, and stakeholders.

show abstract

“…Whoever deciphers this will get the reward, provided that the rest of the members of the network confirm that the answer is correct. Currently, 6.25 Bitcoins are obtained for each new block validated; this is due to the third Bitcoin halving that took place on 11 May 2020 [14]. We must consider that to this fixed amount of Bitcoins are added the commissions for each of the transactions.…”

Section: Introductionmentioning

confidence: 99%

Cryptocurrency Mining from an Economic and Environmental Perspective. Analysis of the Most and Least Sustainable Countries

et al. 2021

View full text Add to dashboard Cite

There are different studies that point out that the price of electricity is a fundamental factor that will influence the mining decision, due to the cost it represents. There is also an ongoing debate about the pollution generated by cryptocurrency mining, and whether or not the use of renewable energies will solve the problem of its sustainability. In our study, starting from the Environmental Performance Index (EPI), we have considered several determinants of cryptocurrency mining: energy price, how that energy is generated, temperature, legal constraints, human capital, and R&D&I. From this, via linear regression, we recalculated this EPI by including the above factors that affect cryptocurrency mining in a sustainable way. The study determines, once the EPI has been readjusted, that the most sustainable countries to perform cryptocurrency mining are Denmark and Germany. In fact, of the top ten countries eight of them are European (Denmark, Germany, Sweden, Switzerland, Finland, Austria, and the United Kingdom); and the remaining two are Asian (South Korea and Japan).

show abstract

The Economic Effect of Bitcoin Halving Events on the U.S. Capital Market

Cited by 8 publications

References 10 publications

The Effect of Positive and Negative Events on Cryptocurrency Prices

The Effect of Positive and Negative Events on Cryptocurrency Prices

An Empirical Examination of Bitcoin’s Halving Effects: Assessing Cryptocurrency Sustainability within the Landscape of Financial Technologies

Cryptocurrency Mining from an Economic and Environmental Perspective. Analysis of the Most and Least Sustainable Countries

Contact Info

Product

Resources

About