The Impact of Cryptocurrency Markets on the Traditional Financial Markets of the USA, UK, and Germany

The acceleration of the globalization process and the structural changes in technology that emerged in the 2000s have affected financial markets. This interaction in the financial markets has made the emergence of new financial assets necessary. According to the ARDL boundary test results, there is no significant relationship between cryptocurrency markets and stock returns in both the long and short term for the UK financial markets. For the German financial markets, it has been determined that there is a significant and positive long-term relationship between the cryptocurrency market assets Bitcoin and Tether and stock market returns. In the short term, no significant relationship has been detected. For the long term in the U.S. financial markets, it has been determined that there is a significant and positive relationship between Bitcoin, a cryptocurrency market asset, and stock market returns, while there is no significant relationship between Ethereum and Tether with stock market returns. In the short term, no significant relationship has been detected. These findings offer significant implications for policymakers, investors, and market analysts.