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Semi-strong efficiency of Bitcoin

Author

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  • Vidal-Tomás, David
  • Ibañez, Ana

Abstract

This research examines the semi-strong efficiency of Bitcoin in the Bitstamp and Mt.Gox markets, showing how the digital currency responds to monetary policy and Bitcoin events. On the one hand, we observe that Bitcoin has become more efficient over time in relation to its own events. On the other hand, Bitcoin is not affected by monetary policy news, highlighting the absence of any kind of control on Bitcoin. These findings are relevant for investors and policymakers since Bitcoin is a financial asset without any connection to the measures of central banks.

Suggested Citation

  • Vidal-Tomás, David & Ibañez, Ana, 2018. "Semi-strong efficiency of Bitcoin," Finance Research Letters, Elsevier, vol. 27(C), pages 259-265.
    • Handle: RePEc:eee:finlet:v:27:y:2018:i:c:p:259-265
    DOI: 10.1016/j.frl.2018.03.013
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    References listed on IDEAS

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    More about this item

    Keywords

    Bitcoin; Market efficiency; Semi-strong efficiency; Central banks;
    All these keywords.

    JEL classification:

    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading

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