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Bitcoin attention and economic policy uncertainty

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  • Gill-de-Albornoz, Belén
  • Lafuente, Juan A.
  • Monfort, Mercedes
  • Ordoñez, Javier

Abstract

This paper explores the role of Economic Policy Uncertainty (EPU) as driver of the Bitcoin public attention. Using Google trends data from January 2010 to November 2021 in a set of 22 countries, a Principal Components Analysis reveals a strong unique commonality on the internet searching patterns for Bitcoin across countries, which suggests that the potential explaining factors of the Bitcoin attention should be global instead of local. The multivariate analysis corroborates this hypothesis since EPU at the country level does not play a significant role in explaining the searching patterns on Google for Bitcoin, while the global EPU does.

Suggested Citation

  • Gill-de-Albornoz, Belén & Lafuente, Juan A. & Monfort, Mercedes & Ordoñez, Javier, 2024. "Bitcoin attention and economic policy uncertainty," Finance Research Letters, Elsevier, vol. 60(C).
    • Handle: RePEc:eee:finlet:v:60:y:2024:i:c:s1544612323012114
    DOI: 10.1016/j.frl.2023.104839
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    More about this item

    Keywords

    Bitcoin; Google trends; Uncertainty; Risk appetite;
    All these keywords.

    JEL classification:

    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • G41 - Financial Economics - - Behavioral Finance - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making in Financial Markets

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