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Exploring the nexus between price and volume changes in the cryptocurrency market

  • Adeyinka Adediran*
  • , Bola Babajide
  • , NATALIIA OSINA
  • *Corresponding author for this work
  • Anglia Ruskin University
  • De Montfort University

Research output: Contribution to journalArticle (journal)peer-review

70 Downloads (Pure)

Abstract

The analysis of the price–volume relationship offers valuable insights into the underlying dynamics of financial markets, enabling investors and market participants to make informed inferences based on the data derived from price and volume. This concept has extensively been studied in the stock market, while it remained understudied in the cryptocurrency trading system. The study aims to contribute to the literature by examining the causal relationship between price changes and trading volume for the top three cryptocurrencies (Bitcoin, Ethereum and Tether) listed on CoinMarketCap. Previous research that examined causal relationship focused on Bitcoin and Ethereum, while neglecting Tether, which is often used by investors to avoid price volatility. The study employs correlation matrix, vector autoregression Model, and granger causality to conduct the analysis of the research. The data for this study were extracted from CoinMarketCap, which provides the daily closing price and 24 hours traded volume of the to
Original languageEnglish
Pages (from-to)498–512
Number of pages15
JournalJournal of Asset Management
Volume24
Issue number6
Early online date12 Aug 2023
DOIs
Publication statusPublished - 12 Aug 2023

Keywords

  • cryptocurrency market
  • Cryptocurrency market
  • Correlation
  • Vector autoregression
  • Volume changes
  • Bitcoin
  • Price return
  • Granger causality

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