Structural Breaks Detected by GSADF
GSADF testing revealed notable periods of structural change in both Bitcoin and S&P 500 prices during 2024, often coinciding with global economic events and shifts in investor sentiment. These breaks signaled shifts between bullish and bearish phases, informing portfolio risk management strategies for investors.
Bitcoin's Exponential Growth and High Volatility
In 2024, Bitcoin continued its pattern of rapid appreciation—recording over 8,500% growth since 2013—while remaining highly volatile. Price surges and sharp corrections were often highlighted by the GSADF test, particularly during market stress and adoption surges, making Bitcoin both lucrative and risky for investors.
S&P 500's Steady Growth and Market Stability
The S&P 500 reached new record highs in 2024, peaking above 6,000 points thanks to robust corporate earnings and technological innovation. The GSADF analysis confirmed ongoing stability for the index, with only minor structural changes, highlighting its role as a foundation for long-term financial security.
Comparative Performance: Risk vs. Return
A 10-year review showed Bitcoin's cumulative returns vastly outpaced the S&P 500, but at the cost of much higher volatility and risk. Mixed portfolios—such as a 90/10 allocation of S&P 500 to Bitcoin—delivered superior returns with moderated risk, supporting the use of GSADF-based diversification strategies.
Portfolio Strategies and Future Outlook
Researchers project significant long-term potential for Bitcoin, estimating future prices could rise sharply if volatility can be managed. The S&P 500 is expected to maintain modest but stable growth, while GSADF tests remain essential tools for anticipating and responding to regime changes, especially as AI and tech innovation continue shaping markets.
International Research Scientist Awards
Nominate Now: https://researchscientist.net/award-nomination/?ecategory=Awards&rcategory=Awardee
Contact us: support@researchscientist.net
Visit our website: researchscientist.net
Get Connected Here:
====================
Facebook : https://www.facebook.com/profile.php?id=61563002251377
Twitter : https://x.com/research14659
Pinterest : https://in.pinterest.com/researchscientistquery/_pins/
Instagram : https://www.instagram.com/researchscientist/
#sciencefather #research awards #Lecturer #scientist #professor #BitcoinTrends2024 #SP500Analysis #GSADF #MarketBubbles #CryptoEconometrics #FinancialStability
No comments:
Post a Comment