INVESTIGATION OF THE ASSOCIATION BETWEEN BITCOIN AND FINANCIAL INDICATORS

Objective: Crypto currencies have become more important and widely used in recent years with the development of technology. Bitcoin is the most known of these currencies that are not connected to a central authority and secured with cryptographic systems. In this study, the major cryptographic currencies and their operating processes are examined. Besides, the association between Bitcoin prices and foreign exchange, stock, commodity markets and interest rates has been discussed. Methods: The frequency of the data set is monthly and covers the period of March-2012 and May-2018. We apply Johansen Cointegration and Granger Causality time series methods. Results: According to the results of time series methods, Bitcoin prices have an increasing trend with a high volatility. Stock markets variables relatively have an impact on Bitcoin prices. According to the Granger causality test and other tests results, there is a statistically significant relationship between the interest rates and Bitcoin prices