Proceedings of the International Workshop on Navigating the Digital Business Frontier for Sustainable Financial Innovation (ICDEBA 2024)

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Analysis of the Impact of Macroeconomics on the Cryptocurrency Market and Market Linkage

Authors
Kaixun Wu1, *
1Business Administration, FOM Hochschule Für Oekonomie & Management, 45127, Essen, Germany
*Corresponding author. Email: wukaixun@ldy.edu.rs
Corresponding Author
Kaixun Wu
Available Online 24 February 2025.
DOI
10.2991/978-94-6463-652-9_54How to use a DOI?
Keywords
BTC; ETH; DXY; VAR model; Cryptocurrency
Abstract

Nowadays, the influence mechanism of macroeconomic variables on traditional investment targets has been fully studied, but few scholars have studied the impact of macroeconomic variables on the crypto market. Therefore, this paper uses the daily frequency data from July 31, 2023 to July 26, 2024, and explores the impact of macroeconomic variables (taking the US dollar index DXY as an example) on cryptocurrencies (taking BTC and ETH as examples) and the dynamic relationship between the prices of BTC and ETH through the establishment of a vector autoregressive (VAR) model. The results show that the impact of Bitcoin price on Ethereum price has a negative impact on the price of Ethereum during the bull and bear junction period of the crypto market, which covers the key time node of the BTC halving and the Fed continues to raise interest rates. In addition, the study also found that the U.S. dollar index has no significant impact on the volatility of cryptocurrency prices. These findings are crucial for investors and policymakers seeking to understand the interconnectedness of financial markets.

Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the International Workshop on Navigating the Digital Business Frontier for Sustainable Financial Innovation (ICDEBA 2024)
Series
Advances in Economics, Business and Management Research
Publication Date
24 February 2025
ISBN
978-94-6463-652-9
ISSN
2352-5428
DOI
10.2991/978-94-6463-652-9_54How to use a DOI?
Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Kaixun Wu
PY  - 2025
DA  - 2025/02/24
TI  - Analysis of the Impact of Macroeconomics on the Cryptocurrency Market and Market Linkage
BT  - Proceedings of the International Workshop on Navigating the Digital Business Frontier for Sustainable Financial Innovation (ICDEBA 2024)
PB  - Atlantis Press
SP  - 517
EP  - 528
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-652-9_54
DO  - 10.2991/978-94-6463-652-9_54
ID  - Wu2025
ER  -