A study on the presence of bubbles in the prices of cryptocurrencies with the highest market capp

With the developing technology day by day, commodities have started to take a digital form. Coins were also affected by this change, and crypto-currencies emerged as virtual money. Cryptocurrency is getting more and more popular every day. A price bubble is defined as the divergence of the price of an asset from its true value. The price bubble, which moves away from its true value, becomes attractive to investors and the price of the asset rises rapidly. However, when the bubble formation reaches its peak, prices enter a downward trend almost like the bursting of the bubble. Investors who believe that the prices will decrease even more, this time tend to sell their assets. Price bubbles are shown as one of the most important causes of economic crises in academic studies. The price of cryptocurrencies has increased rapidly in recent years. In this study, it has been tried to reveal whether there is a bubble in the prices of crypto money, which has come to the fore as one of the most important phenomena of recent years. In the first part, the theoretical framework of money has been examined, the historical development of money has been explained, and the phases of money have been explained. Afterwards, the theoretical framework of crypto money was examined. Research on the cryptocurrency market has taken place. Cryptology and blockchain concepts are introduced. Finally, the theoretical framework of the price bubble has been the subject of research in the last chapter. The important price bubbles in history are examined and their results are explained. Finally, empirical findings on whether there is a price bubble in the selected cryptocurrencies have been revealed. In the thesis study, whether there is a price bubble in selected cryptocurrencies was tested using SADF and GSADF tests. The results were interpreted with the help of SADF and GSADF test charts, as detailed in the thesis study. It has been determined that a bubble has formed in the ten crypto currency prices with the highest market value, except Tether. The duration, size and spacing of the balloons are detailed in the study.