Bitcoin price volatility analyzed, GARCH model predicts risk with precision.
The article examines the fluctuations in Bitcoin prices from March 2012 to March 2019 using various single-variable models. The researchers found that the GARCH-M model is the most accurate in predicting Bitcoin price volatility compared to other models. Additionally, the EGARCH model suggests that leverage effects do not impact Bitcoin rate changes, and the estimated model is symmetrical. Various other GARCH models also show that Bitcoin has both positive and negative shocks affecting its price equally.