Factors Affecting Bitcoin Price: A Systematic Analysis

Abstract

Bitcoin (BTC) price has been the subject of criticism over the years due to its relative volatility leading to its first price crash in 2013. With academic and practitioner debate surrounding this form of digital currency, this paper aims to provide a more holistic overview of the economic factors affecting BTC price through conducting a systematic literature review. Based upon a critical review of 51 academic journal articles sourced from various publication databases, this systematic literature review identifies the main factors influencing the price of BTC such as commodities, global indices, and foreign exchange rates and argues that BTC is somewhat isolated from the influence of economic factors. The findings contribute to the existing literature in BTC and price volatility surrounding this digital currency and prove helpful to academic and practitioner debate.