Market value, interest rate, and cryptocurrency volatility

This research study examines the correlation between several cryptocurrencies and major global economic indexes, both in the short term and over an extended period.The research investigates the relationship between interest rates (DRATE) and the total market capitalization of cryptocurrencies, namely Bitcoin, Dogecoin, Cardano, and Binance Coin.The data covers the period from January 2021 to December 2024, using monthly statistics.A vector error correction model (VECM) was used to analyze short-term variations and long-term trends.The findings demonstrate an unstable link between the studied variables, which is statistically significant regarding interest rate changes and their impact on the amount of investment in digital currencies, specifically concerning price variations of digital currencies.Final Analysis Interest rate variations have a statistically significant impact on the volatility of digital currency prices, however fluctuations in the market value of digital currencies do not have a statistically significant influence on their price volatility.