Dynamic Evolution Analysis of Cryptocurrency Market: A Network Science Study

IF 0.4 Q4 ECONOMICS

Journal of Interdisciplinary Economics Pub Date : 2024-08-23 DOI:10.1177/02601079241265744

Maziar Mardan, Ida Khosravipour

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Abstract

In this article, network analysis has been employed to study the dynamic evolution of the cryptocurrency market from 1 January 2020 to 1 January 2024. This approach facilitates an in-depth exploration of the market’s response to several major events during this period, including the coronavirus disease of 2019 (COVID-19) pandemic and the bankruptcy of FTX, one of the largest cryptocurrency exchanges. The study focuses on analysing key network characteristics of the cryptocurrency market, namely: (a) degree centrality, (b) betweenness centrality, (c) clustering coefficient and (d) average path length. Additionally, we explore the co-movements within the market, categorising cryptocurrencies into functional groups for a comparative analysis. This approach enables us to examine shifts in the cryptocurrency network topology, providing insights into how different groups of cryptocurrencies interact with and influence each other. Through this network analysis, we aim to shed light on the intricate interrelationships among cryptocurrencies. The findings of this study are intended to provide investors with valuable insights, potentially guiding the development of more informed and strategic diversification strategies in the dynamic and evolving landscape of the cryptocurrency market.JEL Codes: G11, G12, D85

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加密货币市场的动态演变分析：网络科学研究

本文采用网络分析方法研究了 2020 年 1 月 1 日至 2024 年 1 月 1 日加密货币市场的动态演变。这种方法有助于深入探讨市场在此期间对几个重大事件的反应，包括 2019 年冠状病毒病（COVID-19）大流行和最大的加密货币交易所之一 FTX 的破产。本研究重点分析了加密货币市场的关键网络特征，即：（a）度中心性、（b）度间中心性、（c）聚类系数和（d）平均路径长度。此外，我们还探索了市场内的共同运动，将加密货币分为功能组进行比较分析。通过这种方法，我们可以研究加密货币网络拓扑结构的变化，从而深入了解不同组别的加密货币是如何相互作用和相互影响的。通过这种网络分析，我们旨在揭示加密货币之间错综复杂的相互关系。本研究的结果旨在为投资者提供有价值的见解，从而在加密货币市场的动态和不断变化的格局中，为制定更明智和更具战略性的多样化策略提供潜在指导：G11, G12, D85

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来源期刊

Journal of Interdisciplinary Economics ECONOMICS-

CiteScore

1.40

自引率

0.00%

发文量

期刊介绍： The explosion of information and research that has taken place in recent years has had a profound effect upon a variety of existing academic disciplines giving rise to the dissolution of barriers between some, mergers between others, and the creation of entirely new fields of enquiry.