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The drivers of Bitcoin trading volume in selected emerging countries

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  • Taoufik Bouraoui

    (ESC [Rennes] - ESC Rennes School of Business)

Abstract

While most of the debates about cryptocurrencies are centered on the global Bitcoin market, in thisarticle, we focus on local Bitcoin trading volume in 21 emerging countries. In particular, we attempt todetermine the drivers of Bitcoin trading volume in these countries over the period August 1st, 2015 – June2nd, 2018. Based on VECM and ARDL models, we find evidence of significant relationship between thelocal Bitcoin trading volume in each country and the associated banking system access, especially in theshort-run. Moreover, altcoins (Ethereum, Ripple) prices are shown to affect positively and significantlythe local Bitcoin trading volume for most countries in the long-run (VECM results) and the short-run (ARDL results).

Suggested Citation

  • Taoufik Bouraoui, 2020. "The drivers of Bitcoin trading volume in selected emerging countries," Post-Print hal-03004413, HAL.
    • Handle: RePEc:hal:journl:hal-03004413
    DOI: 10.1016/j.qref.2019.07.003
    Note: View the original document on HAL open archive server: https://rennes-sb.hal.science/hal-03004413
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    Cited by:

    1. Marmora, Paul, 2022. "Does monetary policy fuel bitcoin demand? Event-study evidence from emerging markets," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 77(C).
    2. Yarovaya, Larisa & Zięba, Damian, 2022. "Intraday volume-return nexus in cryptocurrency markets: Novel evidence from cryptocurrency classification," Research in International Business and Finance, Elsevier, vol. 60(C).
    3. Yousaf, Imran & Yarovaya, Larisa, 2022. "The relationship between trading volume, volatility and returns of Non-Fungible Tokens: evidence from a quantile approach," Finance Research Letters, Elsevier, vol. 50(C).
    4. Almeida, José & Gonçalves, Tiago Cruz, 2023. "A systematic literature review of investor behavior in the cryptocurrency markets," Journal of Behavioral and Experimental Finance, Elsevier, vol. 37(C).
    5. Fairouz Mustafa & Suman Lodh & Monomita Nandy & Vikas Kumar, 2022. "Coupling of cryptocurrency trading with the sustainable environmental goals: Is it on the cards?," Business Strategy and the Environment, Wiley Blackwell, vol. 31(3), pages 1152-1168, March.
    6. Jiménez, Inés & Mora-Valencia, Andrés & Perote, Javier, 2023. "Multivariate dynamics between emerging markets and digital asset markets: An application of the SNP-DCC model," Emerging Markets Review, Elsevier, vol. 56(C).
    7. Marmora, Paul, 2021. "Currency substitution in the shadow economy: International panel evidence using local Bitcoin trade volume," Economics Letters, Elsevier, vol. 205(C).

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    More about this item

    Keywords

    Bitcoin; Cryptocurrencies; Banking system access; Altcoins; VECM; ARDL;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • C58 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Financial Econometrics
    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates

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