2025/12/14 by Yihan Hong, Hong, Yihan, Hengxiang Feng +7 · 1 voice
Business, Management and Accounting · Computer Science · Economics, Econometrics and Finance · #Blockchain Technology Applications and Security #FOS: Economics and business #FinTech, Crowdfunding, Digital Finance #General Finance (q-fin.GN) #Market Dynamics and Volatility #q-fin.GN
paper · pdf · doi:10.48550/arxiv.2512.12815
openalex publication_date 2025/12/14 · arxiv published 2025/12/14 · arxiv updated 2025/12/14 · openalex created_date 2025/12/17 · openalex updated_date 2026/07/28
The approval of the Bitcoin Spot ETF in January 2024 marked a transformative event in cryptocurrency markets, signaling increased institutional adoption and integration into traditional finance. This study examines Bitcoin's changing relationships with traditional assets, including equities, gold, and fiat currencies, following this milestone. Using rolling correlation analysis, Chow tests, and DCC-GARCH models, we found that Bitcoin's correlation with the S&P 500 increased significantly post-ETF approval, indicating stronger alignment with equities. Its relationship with gold stabilized near zero, while its correlation with the U.S. Dollar Index remained consistently negative, reflecting its continued independence from fiat currencies. These findings offer insights into Bitcoin's evolving role in portfolios, implications for market stability, and future research opportunities on cryptocurrency integration into traditional financial systems.