The Impact of Bitcoin on Global Financial Markets: A Comparative Study of Cryptocurrencies and Traditional Assets

Abstract

Bitcoin has lately been a disruptive force in global financial markets, challenging the dominance of traditional assets like stocks, bonds, and commodities. This study examines how Bitcoin and different cryptocurrencies have an effect on international monetary markets through in comparison their performance with that of conventional asset instructions. The study attempts to apprehend how traders, monetary specialists, and marketplace analysts perceive Bitcoin in relation to traditional economic gadgets primarily based on a sample size of 200 respondents. It evaluates its correlation and volatility as well. Quantitative methods are used in the study to assess investor sentiment, risk tolerance, and the potential for adding Bitcoin to global financial portfolios. Our research indicates that Bitcoin is a risky and alluring asset for both individual and institutional buyers because it yields extra rewards but additionally exhibits more volatility and unpredictability. The study also investigates whether cryptocurrencies will ultimately replace or enhance traditional assets, as well as how they are affecting financial markets moving ahead.