Unlocking the investment nexus between artificial intelligence and Bitcoin: Modified cross-quantile regression insights
Seyed Alireza Athari, Derviş Kırıkkaleli, Chafic Saliba, Victoria Olushola Olanrewaju
Abstract
In recent years, cryptocurrencies have emerged as a prime digital currency and an important asset, and the financial system is emerging as an important aspect while artificial intelligence (AI) has advanced expeditiously. Although AI and Bitcoin are among the most important topics in the world, empirical findings in this area are very limited. Thus, this study aims to explore co-movement between AI and Bitcoin price using quantile-based approaches from 2012 to 2024. Remarkably, the low-to-mid quantiles of AI (0.15–0.50) and the mid-to-high quantiles of BITCOIN (0.30–0.80) show a continuously positive and substantial effect from BITCOIN on AI. When AI is in its low-to-mid quantiles (0.15–0.60), it has a large and favorable impact on BITCOIN, particularly in the mid-to-upper quantiles (0.35–0.95). The results are robust by Moment Quantile Regression and Quantile-on-Quantile KRLS methods. Based on these findings policies are suggested.