EFFECT OF BITCOIN PRICES ON CAPITAL FLOWS IN NIGERIA
EFFECT OF BITCOIN PRICES ON CAPITAL FLOWS IN NIGERIA

Summary/Abstract: The study examined the effect of bitcoin prices on capital flows in Nigeria. it employed descriptive statistics, co-integration analysis, and the ARDL bounds test to show short-run and long-run relationships among the variables. Multiple regression analysis was conducted using secondary data from the Central Bank of Nigeria bulletin. Bitcoin prices, exchange rate, gross domestic product, inflation rate, interest rate, stock index and trade balance were seen to have exerted both negative and positive effects on capital flows. The study highlighted the needs for policymakers to develop and implement targeted risk management to address the unique challenges posed by bitcoin and other crypto currencies and promote a stable and efficient financial system. Monetary authorities, in particular, are enjoined to develop strategies that will impact positively on the overall growth of the economy through the effective application of cryptocurrency policies.

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