Impact of Cryptocurrency Market on the Performance of Stock Market- An Empirical Study

Jakhongir Shaturaev

MPRA Paper from University Library of Munich, Germany

Abstract: This paper intends to measure the effect of cryptocurrency market on the performance of stock market. It considers US S&P500 daily index as the dependent variable while daily price and volume of Bitcoin as independent variables and daily US volatility index and oil prices as controlled variables from 2017 to 2021. Applying simple regression model, this study observes significantly negative impact of cryptocurrency market on the performance of stock market while it notices an insignificant but positive impact on the same. Both US VIX and oil prices also negatively affect the performance. The recommendations of this study may benefit concerned parties to utilize the growing popularity of cryptocurrencies in favor of stock market performance and economic growth.

Keywords: Bitcoin; Performance; Portfolio diversification; Regression model; Stock market (search for similar items in EconPapers)
JEL-codes: G0 H0 M0 O1 (search for similar items in EconPapers)
Date: 2023-04-05, Revised 2023-05-12
New Economics Papers: this item is included in nep-pay
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Citations: View citations in EconPapers (1)

Published in International Journal of Capital Market 25.1(2023): pp. 24-38

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:118244

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