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The Market Efficiency of Bitcoin: A Weekly Anomaly Perspective

Author

Listed:
  • Yutaka Kurihara
  • Akio Fukushima
Abstract
Bitcoin is a cryptocurrency. It is not a legal currency but a private monetary system that manages itself and does not depend on central banks or governments. Since the development of Bitcoin, its trading volume has been increasing largely and rapidly. Some fear the increase in Bitcoin usage as it is quite different from traditional currencies; however, its use is spreading all over the world. This paper examines empirically whether or not weekly price anomalies exist by checking the market efficiency of Bitcoin. The empirical results show that the Bitcoin market is not efficient. However, the empirical results show that Bitcoin transactions are becoming and can become more efficient. The results suggest that Bitcoin returns will be random in the future.JEL classification numbers: E42, E44, E51Keywords: Anomaly, Bitcoin, efficient market

Suggested Citation

  • Yutaka Kurihara & Akio Fukushima, 2017. "The Market Efficiency of Bitcoin: A Weekly Anomaly Perspective," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 7(3), pages 1-4.
    • Handle: RePEc:spt:apfiba:v:7:y:2017:i:3:f:7_3_4
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    References listed on IDEAS

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    More about this item

    Keywords

    anomaly; bitcoin; efficient market;
    All these keywords.

    JEL classification:

    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy

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