Dependence structure between bitcoin price and its influence factors

Bitcoin is a decentralised digital currency which attracts growing interest over recent years. Much research from different subjects emerged as bitcoin is a multidisciplinary product. Among all these studies, the interpretation of the drastic fluctuation of bitcoin price attracts a great attention. Many influence factors of bitcoin price were found. However, seldom research reveals the dependence structure between price and its influence factors. By selecting ten interpretable influence factors from the bitcoin network and using copula theory, we find that the bitcoin price has different correlation structures with its influence factors. These findings provide new insights into the behaviour of miners, users, and coins in the bitcoin system, thus leading to meaningful implications for policymakers, investors and risk managers dealing with bitcoin and other cryptocurrencies.