Bitcoin’s Price is a Leading Indicator of Geopolitical Risk Says Paper

geopolitical risk bitcoin price correlation 2010 2019

Bitcoin is not only a hedge against geopolitical risk (GPR), but bitcoin’s price (BCP) can also predict it according to a new paper. “GPR can be positively affected by BCP, which suggests that the Bitcoin market is a leading indicator, when it comes to reflecting and providing contingency for the financial risks associated with the global geopolitical events,” they say. This is the first time such claim has been made and it is the first time a study finds bitcoin’s price is a leading indicator for anything, let alone geopolitical risk. “By analyzing the time-varying interrelationship between GPR and BCP, we can also conclude that the Bitcoin can be considered as an asset to avoid GPR during several time periods, but this is not always going to be the case. On one hand, the GPR can affect BCP during certain time periods. Due to this, investors can predict the BCP…

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