Electricity Net Generation and the Cryptocurrency Market
14 Pages Posted: 3 Dec 2019
Date Written: November 18, 2019
In this paper, we investigate whether the Bitcoin return can predict the electricity net generation in the United States. By utilizing the data from February 2014 to July 2019, we find that higher Bitcoin return leads to a higher electricity net generation via the possible channel that increases the Bitcoin trading volume. Furthermore, we find that the US-China trade war could weaken the connection between the U.S. electricity net generation and Bitcoin volume while the China crypto-trade policy has no effect on the relationship.
Keywords: Bitcoin, Electricity Net Generation, Return, Trading Volume
JEL Classification: C22, G15, D81
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