Does Bitcoin's Price Affect on the Economic Factors? Cross Country Evidence

(Pages 1-8)

Ahmad Alqatan*
Arab Open University, Kuwait.


In this paper, I aim to identify the relationship between the Bitcoin and the economic factors using the Fully Modified Least Square (FMOLS) estimator. In fact, the Key economic factors identified for the investigation are the exchange rate, the net trade, the consumer price index, inflation, and the interest rates. Therefore, to test the validity of the chosen technique, I conducted the unit root and the co-integration tests of Pedroni (1999,2004) based on monthly data over the period from January 2015 to December 2019. Actually, the obtained results indicated that, excepting the interest rate, the variables have a strong positive correlation with the Bitcoin, However, I did not find a positive correlation with the Bitcoin. Then, the long-run relationship between the Bitcoin price and the different variables considered in the FMOLS estimate is stronger than the short-run impact since inflation favors the use of the Bitcoin.


Bitcoin; economic indicators; co-integrating relationship; FMOLS.

JEL Classification:

G15, M21, O47

How to Cite:

Ahmad Alqatan. Does Bitcoin's Price Affect on the Economic Factors? Cross Country Evidence. [ref]: vol.20.2022. available at:

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