The Study of Factors That Have Relationship with Gold and Bitcoin: The Endogenous Analysis

Abstract

The aim of this study was to examine the factors associated with both gold and bitcoin, as well as their latent relationship. The independent variables were divided into 5 groups as follows: Stock Index Group, Currency Exchange Group, Commodity Group, Yield Group. US government bonds and Google Trends word search group to view aggregate demand. All data were analyzed in least squares regression (OLS) format to analyze latent correlation between variables. The groups of independent variables that were studied were 1. Stock price index groups are: London Stock Index (FTSE), Hong Kong Stock Index (HIS) 2. Currency Index Group, including the Japanese Yen Index (JXY) 3. Commodities Group: Platinum Global Price (XPT), Crude Oil ( OIL) 4. Group of search terms in Google Trends to look at aggregate demand, including the word “Gold” (Goldgg) and the word “Bitcoin” (BTCgg). as a guideline for investors to use as a tool in Portfolio Adjustment in Gold and Bitcoin and Other Assets

From the results of this research, it was found that correlated variables The positives with gold are: Global platinum price, Japanese yen index The variables that have a negative relationship with gold are: London stock market index prices, Google Trends search term Gold. On the Bitcoin side, it was found that the variables were correlated. The positive variables with Bitcoin were the Google Trends keyword, Bitcoin, while the variables negatively correlated with Gold were Google Trends, the word Gold, and the other variables were not correlated. with bitcoin and when considering the variables An underlying correlation with both gold and bitcoin was found in the Google Trends search term Gold which had a negative correlation with both gold and bitcoin.