Bitcoin has emerged as a fascinating phenomenon in financial markets. It still hasn’t reached mass adoption and Bitcoin prices are still as volatile as ever. Without any central authority issuing the currency, Bitcoin has been associated with controversy ever since its popularity, accompanied by increased public interest.

In this paper, the authors examine the potential drivers of the Bitcoin price, ranging from fundamental sources to speculative and technical ones. They also include a study of the potential influence of the Chinese market. The evolution of relationships is examined in both time and frequency domains utilising the continuous wavelets framework, so that the authors not only comment on the development of the interconnections in time but also distinguish between short-term and long-term connections.

The Bitcoin price forms a unique asset possessing properties of both a standard financial asset and a speculative one. Price dynamics have been a controversial topic since the cryptocurrency increased in popularity and became known to a wider audience. Discover the issue of Bitcoin price formation and development from a wider perspective, and find out what the most frequently claimed drivers of the Bitcoin price are.