Bitcoin and Market Dynamics: An Event Study on Its Relationship with the S&P 500, US Dollar Index, and WTI Crude Oil
This study explores the relationship between Bitcoin and major financial indices—the US S&P 500 Index, the US Dollar Index, and WTI crude oil—amid global crises. Using dynamic Pearson correlation coefficients and t-tests, the results reveal a significant positive correlation between Bitcoin and the S&P 500 during the COVID-19 pandemic, with the S&P 500 showing a leading predictive effect on Bitcoin prices. During the Russo-Ukrainian War, Bitcoin and WTI crude oil exhibited a strong positive correlation, suggesting rising oil prices coincide with higher Bitcoin prices. Conversely, during the FTX collapse, Bitcoin and the US Dollar Index displayed a strong negative correlation, indicating that a stronger dollar may lead to declining Bitcoin prices. These findings highlight Bitcoin's dynamic ties to traditional financial assets during global crises, offering insights into its price behavior relative to these indices.
Authors
- Chia‐Hsin Chen (ORCID: https://orcid.org/0000-0002-6557-9848)
- Wen-Tsung Huang
- Pao‐Peng Hsu (ORCID: https://orcid.org/0000-0003-1827-0730)
- Z. Y. You (ORCID: https://orcid.org/0000-0001-6716-1026)
- Yi-Wen Su
Institutions
- Chaoyang University of Technology (TW)
Publication Details
- Published
- 2025-04-26
- DOI
- https://doi.org/10.1109/ic4e65071.2025.11075483
- Primary Topic
- Blockchain Technology Applications and Security
- Type
- article
- Field-Weighted Citation Impact
- 0.00
Funders
- National Science and Technology Council