Brian M. Lucey

Bitcoin Bubble(s)

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Bitcoin Bubble(s)

Bitcoin is soaring. I have previously noted a new test (The generalized sup-ADF test of Phillips for the technically minded : see https://editorialexpress.com/cgi-bin/conference/download.cgi?db_name=CEF2010&paper_id=69 if interested) for bubbles. Applied here we see not one but two bubbles in bitcoin. The shaed series is the test statistic, the light green line its critical value – when the test statistic is above the critical value, it suggests a bubble. Also imposed are the closing values of bitcoin v $US (from MtGeox exchange).
I leave the (pretty obvious) interpretation to yourselves…

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2 responses to “Bitcoin Bubble(s)”

  1. Bubbles in the Dublin Housing Market? | Brian M. Lucey

    […] this may not be the entire story. A newly developed statistical technique (see here and here for previous posts using it to talk about bubbles in London and Bitcoin) has, it is claimed, good […]

    Reply
  2. Fundamental bubbles in Irish House prices? | Brian M. Lucey

    […] roots of a saturday morning eh? I have blogged on these tests for bubbles before : see here, here, here . I leave you to make your own […]

    Reply

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