Forecast Cryptocurrency Market Investments Based on Stock Market Performance

Sreedhar Yalamati

Vol. 9, Issue 1, Jan-Dec 2023

Page Number: 19 - 27

Abstract:

This research, aiming to assess how the cryptocurrency market influences stock market performance, brings forth promising insights. It examines the US S&P500 daily index as the dependent variable, with daily Bitcoin price and volume as independent variables and daily US volatility index and oil prices as controlled variables from 2017 to 2021. The study, utilizing a simple regression model, reveals a notably negative impact of the cryptocurrency market on stock market performance, alongside an insignificant yet positive influence. Additionally, the US VIX and oil prices are found to negatively affect performance. These findings hold the potential to guide relevant stakeholders in leveraging the increasing popularity of cryptocurrencies to enhance stock market performance and foster economic growth.

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