In our endeavor to grasp the driving forces behind cryptocurrency prices, we have developed the Consumer Cryptocurrency Confidence Index (c3i), derived from a set of questions asked monthly to consumers across the United States. Our analysis has uncovered several initial results and pointed to an extensive, exciting research program on consumer behavior that shapes the cryptocurrency markets. Firstly, we are rigorously validating to what extent the c3i can accurately predict changes in cryptocurrency prices as a leading indicator by exploring whether this relationship is merely correlation or potentially causal. Furthermore, we are investigating if consumer characteristics such as age, gender, and political leanings can enhance the accuracy of our index in predicting cryptocurrency prices. We are also examining if the relationship observed between c3i and cryptocurrency prices extends to broader stock market indices like the S&P…Read More
