Critical slowing down associated with critical transition and risk of collapse in crypto-currency.

ABSTRACT: The year 2017 saw the rise and fall of the crypto-currency market, followed by high variability in the price of all crypto-currencies. In this work, we study the abrupt transition in crypto-currency residuals, which is associated with the critical transition (the phenomenon of critical slowing down) or the stochastic transition phenomena. We find that, regardless of the specific crypto-currency or rolling window size, the autocorrelation always fluctuates around a high value, while the standard deviation increases monotonically. Therefore, while the autocorrelation does not display the signals of critical slowing down, the standard deviation can be used to anticipate critical or stochastic transitions. In particular, we have detected two sudden jumps in the standard deviation, in the secon

SUBMITTER: Tu C 

PROVIDER: S-EPMC7137962 | biostudies-literature | 2020 Mar

REPOSITORIES: biostudies-literature