Peer-Reviewed Open Access Journal

DIAS Technology Review

The Institute has a unique distinction of publishing a bi-annual International journal DIAS Technology Review – The International Journal for Business and IT. The Editorial Board comprises of...

ISSN: 2231-2498 Quarterly English Since 2011
Current Issue

Vol. 19 No. 1 (2022)

Articles 37th Edition of DTR Apr 2022 – Sept 2022

A Quanatitatve Investigation of the Relationship between the Prices and Trading Volume of Bitcoin and Other Cryptocurrencies

Authors
Assistant Professor, Delhi School of Professional Studies and Research,Delhi
266 Views
180 Downloads
Published 2025-08-13
Pages 29-51
Abstract

The price of Bitcoin has been a topic of much interest in recent years, as it has experienced dramatic swings in value. However, the relationship between the price of Bitcoin and other cryptocurrencies is less well-understood. This paper presents a quantitative investigation of the relationship between the price of Bitcoin and the prices of other major cryptocurrencies, such as Ethereum, Litecoin, and Stellar. The paper uses correlation and regression analysis to investigate the relationship between the prices and volume traded of these cryptocurrencies. The results of the analysis show that there is a high degree of correlation between the prices of Bitcoin and other major cryptocurrencies. These findings indicate that when one cryptocurrency experiences a jump in value, there is an increased likelihood of similar jumps occurring in other cryptocurrencies. Notably, this co-jumping phenomenon is closely tied to spikes in trading volume. This underscores the critical role of trading volume fluctuations in influencing the overall volatility of cryptocurrencies. These results align with earlier research emphasizing the significance of trading volume in understanding the dynamics of cryptocurrency market volatility. This suggests that the price of Bitcoin may be a leading indicator for the prices of other cryptocurrencies. The findings of this paper suggest that the price of Bitcoin is not a standalone asset, but rather is influenced by the prices of other cryptocurrencies. This has important implications for investors who are considering investing in Bitcoin or other cryptocurrencies. The paper concludes by discussing the limitations of the study and by suggesting directions for future research. 

Keywords
Bitcoin, Cryptocurrency, Correlation, Regression, Price, Digital Assets, Interdependence, Price Movements, Market Analysis, Cross-Cryptocurrency Analysis, Time-Series Data, Blockchain Assets.
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