The paper analyzes the impact of changes in U.S. monetary policy on Bitcoin prices. We find that a hypothetical unanticipated monetary tightening, which increases 1 bp on two-year Treasury yield, is associated with about a 0.25\% decrease in Bitcoin price on the Federal Open Market...

Bitcoin in particular and so-called cryptocurrencies in general have shaken up the financial world and seem to be claiming an increasing size of the market share. These new virtual assets present investors with significant opportunities, but also with significant risks. This paper analyzes the...

Using a new series of crypto shocks, we document that money market funds' (MMF) assets under management, and traditional financial market variables more broadly, do not react to crypto shocks, whereas stablecoin market capitalization does. U.S. monetary policy shocks, in contrast, drive...