English (United Kingdom)

https://curated-unify.zendy.io/wp-json/zendy-region/v1/featured_content/oa?rat=en

https://curated-unify.zendy.io/wp-json/zendy-region/v1/highlighted_journal/

Global: Zendy Plus annual

Presents the access of premium content as premium feature

Premium Content

Presents the keyphrase highlighting as premium feature

Keyphrase Highlighting

Presents the summarisation as premium feature

Summarisation

Insights

Presents the pdf analysis as premium feature

PDF Analysis

Presents the zaia usage as premium feature

ZAIA

Global: Zendy Plus monthly

Global: Zendy Tools annual

Global: Zendy Tools monthly

Global: Zendy Free Plan

We investigate which factors contribute most to the liquidity of Bitcoin, using a diverse universe of candidate factors reflecting key developments in the crypto market and the global economy. The empirical analysis relies on three regularized linear regression methods, viz. LASSO, adaptive LASSO, and elastic net. We also apply a cross-fit partialing-out LASSO instrumental-variables regression model, as a supplementary approach to handle endogeneity. Findings reveal that trading volume and realized volatility of Bitcoin, cryptocurrency hacks, Ethereum liquidity, and public attention are the most common drivers of liquidity, irrespective of the penalized regression approach and liquidity proxy adopted. Our evidence confirms the paramountcy of cryptocurrency-specific factors over global economic and financial ones in influencing Bitcoin liquidity.

What determines bitcoin liquidity? A penalized regression approach