Analysis of the impact of various events on the value of cryptocurrency

Abstract

The relevance of the research topic is due to the fact that many crypto investors are attracted by the high liquidity of cryptocurrencies, low transaction costs and ease of transactions via the Internet. ‎In contrast ‎from Fiat currencies, corporate stocks, and bonds, cryptocurrencies do not have an underlying value. ‎demand‏ ‎therefore ‎market‎ cost‎ to a greater extent depends ‎on ‎how well-known ‎and‎ popular ‎this cryptocurrency is. Also, the price of cryptocurrencies is influenced by market sentiment, namely the thoughts, feelings and emotions of investors regarding the asset. With the help of traditional asset valuation models, it is impossible to qualitatively explain the latest changes in the price of cryptocurrencies. However, some ‎financial ‎models ‎point ‎to ‎ that cryptocurrency is currently overvalued. Apparently, the hypothesis of financial instability is better than any of the ‎verified ‎economic ‎theories ‎suitable ‎to ‎explain ‎recent ‎changes‎in ‎prices ‎of ‎cryptoassets. The theory suggests that because the cryptocurrency market is moving against the macroeconomic fundamentals of the economy, emotions are a major factor. determining ‎demand‏ on ‎a given market.

In this article, the authors examined the influence of behavioral financial factors on investment decisions in the cryptocurrency market. Multiple regression analysis was used to examine this effect. The purpose of the article is to study the development of cryptocurrency in Kazakhstan and assess the impact of events on the value of cryptocurrency. Based on this goal, the authors put forward the following tasks: to analyze and evaluate the use of cryptocurrencies in the modern economy; explore the features of cryptocurrency pricing.