Analyzing the correlation between the cryptocurrency market and the computational market

Abstract

This study examines the relationship between price fluctuations of the RX 6700XT graphics card and the cryptocurrency Ethereum (ETH) during a period of high market volatility from April 2021 to April 2022. Drawing on price data from the United States, Germany, and Japan, the analysis focuses on the RX 6700XT due to its popularity among cryptocurrency miners for its energy efficiency and high hash rate—a measure of computational performance. Ethereum, selected as the most profitable cryptocurrency for GPU-based mining during the observed timeframe, serves as the basis for the methodological analysis. The study employs time series analysis, stationarity tests, cointegration tests, and an error correction model based on the framework of Gujarati and Porter (2010). The findings provide empirical evidence of a significant relationship between cryptocurrency prices and graphics card prices, highlighting the economic interplay between these markets.