Bitcoin: a beginning of a new phase?
Although financial experts have often criticized Bitcoin for being too volatile as an asset and an independent electronic currency, the volatility of Bitcoin has declined at a rapid pace since January 2015. This study addresses if Bitcoin enters a new phase. Many extensions of GARCH have been carried out to adequately estimate Bitcoin price dynamics. Our results suggest that despite maintaining a moderate volatility, Bitcoin remains typically reactive to negative rather than positive news. Bitcoin market is still, therefore, far from being mature.