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

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  • Shaturaev, Jakhongir

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.

Suggested Citation

  • Shaturaev, Jakhongir, 2023. "Impact of Cryptocurrency Market on the Performance of Stock Market- An Empirical Study," MPRA Paper 118244, University Library of Munich, Germany, revised 12 May 2023.
    • Handle: RePEc:pra:mprapa:118244
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    File URL: https://mpra.ub.uni-muenchen.de/118244/1/Impact%20of%20Cryptocurrency%20Market.pdf
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    References listed on IDEAS

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    Cited by:

    1. Sakthivel P. & Rajaswaminathan S., 2024. "Impact of crypto currencies on performance of stock returns: Evidence from BRICS countries," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(2(639), S), pages 243-254, Summer.

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    More about this item

    Keywords

    Bitcoin; Performance; Portfolio diversification; Regression model; Stock market;
    All these keywords.

    JEL classification:

    • G0 - Financial Economics - - General
    • H0 - Public Economics - - General
    • M0 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - General
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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