The Value of Bitcoin: A Closer Look at How Investor Attention Affects the Value of Bitcoin

Abstract

This paper looks at two measure of the value of Bitcoin (the price and volume traded in the last month of Bitcoin) and sees if investor attention causes any changes in the values of Bitcoin. This paper also adds exchange rates, the S&P 500, and the price of gold as other possible explanations for the value of Bitcoin. This paper examines the variables at a worldwide level and at the countries with the top 10 GDP in the world. The results of this paper find that investor attention has a significant positive relationship with the value of Bitcoin. Specifically at the country level, Russia consistently has a significant relationship with the value of Bitcoin.