The Influence of Fintech and Technology Stock Indices on Cryptocurrencies Dynamics: A Quantile Regression Approach

This study examines the asymmetric and nonlinear linkages between the major cryptocurrencies of Bitcoin (BTC), Ethereum (ETH), Binance Coin (BNB), Ripple (XRP) and the major financial indices of KBW NASDAQ Financial Technology Index and the Dow Jones Global Technology Index using Quantile-on-Quantile Regression (QQR).We investigate how bitcoin responds to the financial indices in different quantiles of the return distribution using a monthly time-series data set January 01, 2020 to December 31, 2024. Cryptocurrencies provide strong responses on quantile conditional dependence, illustrating how various market conditions impact other financial variables. These impacts emphasize the diversification and risk amplification features of cryptocurrencies and are especially evident at times of excessive market optimism and pessimism. The paper also highlights the necessity of keeping an eye on the connections between crypto assets and the financial industry in order to provide suitable regulatory responses to dangers that emerge in a sector that has been seeing significant growth. The findings of the correlation between traditional financial markets and the digital asset ecosystem will likely teach investors, policymakers, and regulators a lot.

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Publication Details

Journal
International Journal of Social Science & Entrepreneurship
Published
2025-06-30
DOI
https://doi.org/10.58622/ijsse.v5i2.359
Primary Topic
Blockchain Technology Applications and Security
Type
article
Field-Weighted Citation Impact
0.00
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article

The Influence of Fintech and Technology Stock Indices on Cryptocurrencies Dynamics: A Quantile Regression Approach

Irfan Ahmed, Ammar Ahmed Siddiqui, Muhammad Laraib, Muqaddas Noureen
International Journal of Social Science & Entrepreneurship
Blockchain Technology Applications and Security
article

The Influence of Fintech and Technology Stock Indices on Cryptocurrencies Dynamics: A Quantile Regression Approach

Irfan Ahmed, Ammar Ahmed Siddiqui, Muhammad Laraib, Muqaddas Noureen
article en

Abstract

This study examines the asymmetric and nonlinear linkages between the major cryptocurrencies of Bitcoin (BTC), Ethereum (ETH), Binance Coin (BNB), Ripple (XRP) and the major financial indices of KBW NASDAQ Financial Technology Index and the Dow Jones Global Technology Index using Quantile-on-Quantile Regression (QQR).We investigate how bitcoin responds to the financial indices in different quantiles of the return distribution using a monthly time-series data set January 01, 2020 to December 31, 2024. Cryptocurrencies provide strong responses on quantile conditional dependence, illustrating how various market conditions impact other financial variables. These impacts emphasize the diversification and risk amplification features of cryptocurrencies and are especially evident at times of excessive market optimism and pessimism. The paper also highlights the necessity of keeping an eye on the connections between crypto assets and the financial industry in order to provide suitable regulatory responses to dangers that emerge in a sector that has been seeing significant growth. The findings of the correlation between traditional financial markets and the digital asset ecosystem will likely teach investors, policymakers, and regulators a lot.

International Journal of Social Science & EntrepreneurshipVol. 5(2)
Iqra University (PK)
Openalex Percentile: Top 78%
Blockchain Technology Applications and Security
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