Bitcoin Money Market Efficiency in Indonesia: Descriptive Analysis, Multiple Linear Regression, and Market Efficiency Tests

English

Abstract

The cryptocurrency market, particularly Bitcoin, is a new phenomenon that offers opportunities and challenges for market participants, regulators, and researchers. This study aims to analyze the characteristics, influencing factors, and implications of the Bitcoin money market in Indonesia. This research uses quantitative methods with multiple linier regression. The results show that the Bitcoin money market in Indonesia has unique characteristics, such as high volatility, low correlation with conventional money markets, and high sensitivity to global and domestic issues. In addition, the results also show that money market variables, such as interest rates, inflation, exchange rates, and liquidity, have a significant influence on the demand, supply, price, and volatility of Bitcoin. Based on these findings, this study provides several suggestions for the development of the Bitcoin money market in Indonesia, such as regulation, education, and further research. This research is expected to contribute to the development of literature and policies on money markets and cryptocurrencies, especially in the Indonesian context.