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Are there any studies on the positive correlation between digital assets and stock markets?

avatarRaja ZohaibNov 27, 2021 · 3 years ago3 answers

I'm curious if there have been any studies conducted to explore the potential positive correlation between digital assets, such as cryptocurrencies, and traditional stock markets. Is there any research available that examines the relationship between these two types of assets? I'm particularly interested in understanding if there are any findings that suggest a positive correlation between digital assets and stock markets, and if so, what factors contribute to this correlation?

Are there any studies on the positive correlation between digital assets and stock markets?

3 answers

  • avatarNov 27, 2021 · 3 years ago
    Absolutely! Several studies have been conducted to investigate the correlation between digital assets and stock markets. One study published in the Journal of Financial Economics found a positive correlation between Bitcoin prices and stock market returns. The researchers attributed this correlation to the increasing acceptance and integration of cryptocurrencies into the mainstream financial system. Another study published in the Journal of Finance examined the correlation between Ethereum prices and stock market volatility, and found a positive relationship. These studies suggest that there is indeed a positive correlation between digital assets and stock markets, and that factors such as market sentiment, macroeconomic conditions, and regulatory developments can influence this correlation.
  • avatarNov 27, 2021 · 3 years ago
    Yeah, there have been some studies looking into the relationship between digital assets and stock markets. One study I came across showed a positive correlation between Bitcoin prices and stock market performance. They argued that as more investors become interested in digital assets, it can have a spillover effect on the stock market. Another study found a positive correlation between Ethereum prices and stock market volatility. It seems like there is some evidence to suggest that digital assets and stock markets are connected, but more research is needed to fully understand the factors driving this correlation.
  • avatarNov 27, 2021 · 3 years ago
    Definitely! There have been studies conducted on the positive correlation between digital assets and stock markets. For example, a study published in the Journal of Financial Economics analyzed the relationship between Bitcoin prices and stock market returns. The researchers found a significant positive correlation, indicating that movements in the digital asset market can have an impact on stock market performance. Other studies have also explored the correlation between Ethereum prices and stock market volatility, with similar findings. It's clear that there is a connection between digital assets and stock markets, and further research can help us better understand the underlying factors.