This is mostly attributed to the new challenges faced by the new elected government.
During the pre-election period, the quantiles regression shows that the political risk index negatively affects Bitcoin return when the market is bearish, whereas a positive impact on volatility is found in bearish and bullish markets. When the political situation becomes severer during the post-election period, the quantiles plots show that the increase of the political risk index leads to a significant increase of Bitcoin return, whereas Bitcoin volatility remains relatively stable. This means that Bitcoin can be adopted as a hedging tool when the political situation becomes severer.
Comparing to the existed studies in the field, this paper considers Google trends as a main source to assess the daily composite political risk index during the US presidential election. Ajmi, H. Report bugs here.
Bitcoin's wild rally — and a fear of missing out — has retail investors flocking to crypto
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You can also find out more about Emerald Engage. Visit emeraldpublishing. Answers to the most commonly asked questions here. Abstract Purpose This paper aims to investigate the effect of the political risk on Bitcoin return and volatility during the US pre-election and post-election periods.
In the chart above, the baseline denotes the exponential growth of active users, while the height above the line illustrates their engagement levels. When engagement levels run high, bitcoin users are in party mode, checking the price daily of their precious coin.
Conversely, when engagement is at a low marked with green dots , this is a good time to buy. Put together, Google Trends is a pretty reliable buy and sell indicator. Here, we can see bitcoin is not in a bubble, and that there is likely still plenty of room for our current bull run to continue. Simply put, Google Trends is a great way to track the growth of active bitcoin users.
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So, what does this say about the recent run-up in price? This piece is not intended to provide, and should not be taken as, investment advice.