Criptomonedas y su mercado mediante componentes principales

Abstract

Cryptocurrencies and their market through Principal Components

Cryptocurrencies are financial products that have caught the attention of investors, regardless of whether they are qualified or unqualified investors. The above is derived from the possibility of obtaining great returns, but there is an extensive variety of them, with differences in technology or purpose. Understanding them is a challenge since, although they are called currencies, they mostly have characteristics of financial assets. With their arrival, they modified the way of making transactions, the payment system, the monetary policy, and the regulations necessary for them to operate. This research aims to understand the origin and behavior of the cryptocurrency market using Principal Components. This methodology helps us identify the most important factors that drive the market. In our case, it has been revealed that the first three principal components explain the most significant variation, accounting for 94.95% of the market variance. Within the first component, 79.00% of the market variations are concentrated, with Bitcoin, Ethereum, and Lido Staked Ether being the leaders. These findings can be used to understand cryptocurrency market dynamics.