*2.1. Underlying Theory of the Macroeconomic Indicators: Demand and Supply Theory*

The quantity theory of money is a concept in monetary economics that holds that money's supply and demand determine the price level. Using this paradigm, Buchholz et al. [11] highlighted how the forces of supply and demand are the main factors influencing the price of Bitcoin. Additionally, utilizing the Keynesian theory of speculative demand for money framework, NaiFovino, et al. [12] and Ciaian et al. [13] highlighted the association between macrofinancial indicators and Bitcoin prices. According to the hypothesis, people who trade in currencies do so to avoid suffering a capital loss on their investments in bonds and other financial assets. A rise in interest rates lowers the value of economic assets, resulting in a loss on the investment of financial assets [14].

Kristoufek [15] extended the research to study the impact of some macroeconomic indicators on the BTC price prediction. He found that Bitcoin appreciates in the long run if it is used more for trade, i.e., non-exchange transactions.
