Document Type

Thesis or dissertation

Date of this Version



Shimon Kogan


This paper explores the relationship between Bitcoin and inflation expectations. More specifically, this paper seeks to understand how inflation expectations impact and move with Bitcoin prices and returns. As cryptocurrencies soared in both popularity and value over the last three years to become a mainstay in global macroeconomics, it remains important to understand how macroeconomic factors such as inflation expectations impact this asset class. Bitcoin is worth examining in particular because of all cryptocurrencies it has the greatest market capitalization and is also the most frequently traded. Using historical data on Bitcoin prices and relevant measures for inflation expectations, this study uses regression analyses and cointegration tests to explore the relationship between Bitcoin and inflation expectations. The regression analyses reveal that inflation expectations are a statistically significant predictor of Bitcoin prices. Cointegration tests reveal that inflation expectations and Bitcoin prices share a long-term equilibrium relationship, albeit one that is not relatively strong.


bitcoin, cryptocurrency, inflation, inflation expectations, macroeconomics



Date Posted: 24 May 2023


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