Cited by 26Financial Markets and Investment StrategiesBlockchain Technology Applications and SecurityMarket Dynamics and Volatility

Bubbles in Bitcoin and Ethereum: The role of halving in the formation of super cycles

Open access
M'bakob, Gilles Brice·2024·Sustainable Futures

Abstract

This study examines the price dynamics of Bitcoin and Ethereum between 2013 and 2022 using two distinct approaches: financial market technical analysis and econometric analysis. Financial market technical analysis employs indicators such as the Relative Strength Index (RSI) and the Hull moving average, while econometric analysis involves the Hodrick-Prescott filter and an Autoregressive Distributed Lag (ARDL) model. The study shows that Bitcoin and Ethereum experienced supercycle years in 2013, 2017, and 2021. The Bitcoin cycle, which averages 3.5 years, was particularly emphasized. The impact of the Bitcoin halving is also noteworthy, especially in the formation of supercycle bubbles in 2021, which affected altcoins such as Ethereum. The implications of this extend to portfolio management advice. It is recommended to carefully evaluate portfolio diversification and adopt a proactive regulatory approach, especially during the Bitcoin halving period.

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Crossref · 10.1016/j.sftr.2024.100178

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Authors
M'bakob, G. B.
Venue
Sustainable Futures
Publisher
Elsevier BV
Published
2024-06
Volume
7
Pages
100178
ISSN
2666-1888 (ISSN-L)
OpenAlex
W4392467450
Cited by
20
References
79
Citations by year
2026: 3 · 2025: 9 · 2024: 8
FWCI
7.15
Type
journal article
Language
en
Open access
Locations
  • Sustainable Futures (publishedVersion, cc-by-nc)
  • DOAJ (DOAJ: Directory of Open Access Journals) (submittedVersion)
Topics
  • Social Sciences › Economics, Econometrics and Finance › Finance › Financial Markets and Investment Strategies
  • Physical Sciences › Computer Science › Information Systems › Blockchain Technology Applications and Security
  • Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Market Dynamics and Volatility
Keywords
Bitcoin, Ethereum, supercycle, price bubbles, Bitcoin halving, altcoins, technical analysis, relative strength index, Hodrick-Prescott filter, ARDL model, portfolio diversification, cryptocurrency regulation

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