The Relationship between Bitcoin and Nasdaq, U.S. Dollar Index and Commodities

Abstract

This paper investigates the long-run interaction between Bitcoin and Nasdaq, U.S. Dollar Index and commodities by applying weekly data from 1 January 2017 until 21 May 2023. This study uses FMOLS, DOLS and CCR methods to examine the long-run association between the variables. The results reveal a positive and significant relationship between Bitcoin and Nasdaq, as well as a similar positive association between Bitcoin and Oil prices. Notably, the U.S. Dollar Index exhibits a negative and significant impact on Bitcoin. However, results show that Gold does not have significant impact on Bitcoin. Finally, the results show that there are significant Granger causality from Nasdaq, oil and gold to Bitcoin.