IS BITCOIN TIED TO BRICS MARKETS? A DEEP DIVE INTO COINTEGRATION AND WAVELET COHERENCE

This study explores the dynamic relationship between Bitcoin and BRICS stock markets using cointegration and wavelet coherence analyses. We used daily Bitcoin and BRICS stock market indices from 01 January, 2013 to 31 March, 2024. The findings of the study reveal valuable insights into Bitcoin's utility as an investment asset in emerging markets and its role in financial portfolios. The independence of Bitcoin from traditional markets, particularly in emerging economies like the BRICS nations, has significant implications for portfolio diversification, risk management, and financial stability.