Examining The Mutual Relationship Between Bitcoin and Stock Markets: Turkey and Selected Countries

Abstract

Decentralized finance formations and the transformation that have taken the whole world under their influence are met with interest by many people today. The fact that the technology behind it is innovative and functional, and the market volumes of cryptocurrencies are increasing day by day and their valuation is one of the only factors that attract investors to this field. The fact that only one smart device and the internet are needed to provide commercial trading transactions makes the issue of accessibility very easy. This transformation, which has recently been called a rebellion against the great authorities in the financial world, has millions of individual and institutional investors behind it. In this study, the mutual relationship between crypto money markets and stock markets, especially Bitcoin, has been examined. Selected stock market indices around the world have found their place in the study. Weekly data between January 01, 2013 and October 31, 2021 were used in the study, and it was tested with the help of VAR analysis and Granger Causality Test. At the same time, the sources in the international literature were used, and the study was prepared in the light of these sources. According to the findings obtained from the analysis, according to the results of Granger causality analysis, it was determined that there is a one-way relationship from Bitcoin variable to Dow Jones index at the 5% significance level. Another finding obtained from the analysis is that there is a one-way causality relationship from the Bitcoin variable to the S&P500 index at the 10% significance level.