Do Cryptocurrency Markets Bear Discipline? – Price Comovement and Market Downturns
Seminar
Do Cryptocurrency Markets Bear Discipline? – Price Comovement and Market Downturns

Date & time

28 November 2024 1:00pm - 2:00pm

Venue

Phillipa Weeks Library, Level 4, Building 7, ANU College of Law

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Event description

Cryptocurrencies display high levels of price comovement. This comovement is both a means to understand market dynamics and a lens by which to assess the health of the market itself. The discipline of capital markets depends on prices of assets varying as a function of their perceived value. Given high levels of price comovement, this could mean cryptocurrencies are effectively identical or a sufficient proportion of investors are uninformed speculators. Sharp market downturns can plausibly change the composition of investors in ways that shed light on whether (informed) investors view cryptocurrencies as identical. I use network analysis techniques to identify factors that are associated with greater degrees of price comovement among cryptocurrencies, and explore the relationship between market downturns and price comovement among cryptocurrency networks. 

 

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Speakers

Eric Alston

Eric Alston

Eric Alston is a Scholar in Residence in the Finance Division at the CU Boulder. Eric’s research and teaching is centered in the fields of law and economics and institutional and organizational analysis, which he applies to research questions in the development of rights along frontiers, the design and implementation of constitutions, and digital governance challenges with an emphasis on cryptocurrencies and blockchain networks. Eric also consults and advises digital governance design projects including blockchain networks, DAOs and data trusts.