Studying the relationship between cryptocurrency markets and traditional financial markets: common dependence and possible interaction effects

Abstract

Modern economic technologies are being transformed in modern conditions of digitalization. Cryptocurrencies operate on the market under certain conditions and interact in a certain way with traditional financial markets. Given that cryptocurrencies are dynamic in the market, prospects for further use of new currencies and possible ways of interaction with traditional financial markets are offered. The main aim of the study is a comprehensive analysis and prospective directions of interaction of cryptocurrencies with traditional financial markets. In the course of the model of the influence of fundamental economic indicators and stock market trends on the price dynamics of the main cryptocurrencies. The results of the research make it possible to clarify the economic nature of cryptocurrencies as specific financial instruments and to improve existing investment management models taking into account the statistical properties of virtual financial assets. Based on analysis of market names, it is shown that global crypto exchanges and cryptocurrencies are focused on people, management, savings and services. The international market of cryptocurrencies, its general condition, was studied. The conclusions are reflected in a comprehensive study of cryptocurrencies and their rapid growth as the main innovation in the global and Ukrainian economy.