Exploring the Causal Relationship Between Crypto Assets and Bist100: An Empirical Investigation

The main aim of this study is to determine the causal relationship between Bitcoin, the cryptocurrency with the highest market volume, and the BIST100, which represents the Turkish stock market. The study period is divided into two temporal periods considering the COVID-19 pandemic, which affected all markets and caused significant changes in their performance. The time intervals are defined as pre-pandemic (18/01/2017 - 9/03/2020) and pandemic period (10/03/2020 -05/05/2023). Daily data was used for analysis, and weekend prices were excluded from the analysis as the stock market operates only on weekdays. The Vector Autoregressive (VAR) model-based Granger Causality Test was used to examine the data. The results of the analysis indicated that no causality could be detected between Bitcoin and BIST100, and vice versa, during both the pre-pandemic and pandemic periods.