According to a new study published by Warwick Business School, the value of cryptocurrencies is determined primarily by the mood of investors and not so much by economic factors or indicators.
Assistant professor of finance Daniele Bianchi has found that the price patterns of the 14 largest cryptocurrencies reflect past returns of investors, combined with the hype and emotion experienced as they watch the value climb or fall.
The research is titled “Cryptocurrencies as an Asset Class: An Empirical Assessment,” the Independent reports.
Bianchi also points out that the study shows limited similarities between bitcoin and gold. At the same time, because of the high volatility of the prices of the biggest cryptocurrencies, they can hardly be seen as a reliable savings instrument.