Bitcoin, Not Disappointing: The Self-fulfilling Expectations of Bitcoin Prices
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Jiang Jiantao, He Ao, Dongwoo Yoo
Since the outbreak of COVID-19, the price of Bitcoin has been rising, and its yield has surpassed most financial assets. More and more investors have poured into the virtual currency trading market. This paper selects the supply and demand factors, expectations of price, the number of buyers, and the degree of simple purchase that affect the Bitcoin price as research variables and uses the implicit function theory to analyze the self-fulfilling expectations of the Bitcoin price. The results show that the rising Bitcoin price has pushed up investors’ expectations of its future price, and at the same time, the reasonable expectations of Bitcoin’s price increase have driven Bitcoin price to new highs.
Bitcoin; Expectations; Self-fulfillment