Analysis of the Dynamic Characteristics of Bitcoin and Ethereum

Abstract

Represented by two digital currencies, Bitcoin and Ethereum, the dynamic characteristics of the currency value of digital currencies are analyzed.First, we conduct a horizontal analysis of the relationship between these two digital currencies through co-integration and Granger causality test.Secondly, the Sup ADF and GSADF test methods are used to longitudinally analyze the bubbles of the three digital currencies.The results show that there are Granger causality and price bubbles in Bitcoin and Ethereum.Through analysis, it is found that the high volatility of currency value is not only related to the relationship between digital currencies but also related to factors such as digital currency market fluctuations and regulatory policies.