Abstract:

This study examines the causal relationship between the price of Bitcoin, which is one of the cryptocurrencies, and the stock exchanges of Turkey and the G7 countries, which is often referred to in recent years. The reason for the fluctuation in Bitcoin prices began in 2013 was the daily data between 01.01.2013-26.01.2018 used in the study. The study first conducted unit root tests and aggregation analysis. The VECM (Vector Error Correction Model) was used to analyze whether the relationship between the variables is in a long-term balance, while the short-term relationships were studied with the help of the Granger Cause/WALD test. The results of the analysis found that no long-term balance relationship between Bitcoin and other country exchanges could be mentioned, while the short-term conclusion was that the UK exchange (FTSE) was the cause of Bitcoin. Bitcoin is also found to be the cause of the S&P 500 and the Canadian Stock Exchange (STSX). As a result, it turns out that in the short term, these three stock exchange indicators could also give an idea about the fluctuation of the Bitcoin price. Investors can go on the way to diversify their risks by investing in Bitcoin and both between these research-themed exchanges.

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