Blockchain and Market Dynamics: Correlation between Cryptocurrency Valuations and Market Interest Rates
Abstract
In this study, the five most well-known cryptocurrencies in the blockchain-based decentralized financing structure were compared with the centralized market interest rates, and it was examined whether there is a significant relationship between the changes in market interest rates and the prices of cryptocurrencies. Key findings indicate a significant relationship between most cryptocurrencies, such as Dash, Litecoin, Ethereum, and Bitcoin, with market interest rates. However, XRP emerges as an exception. In addition to the comparative analysis between cryptocurrencies and market interest rates, this study delves into the underlying mechanisms that govern these relationships. It explores the role of blockchain technology in shaping the decentralized financing structure and highlights the intricacies of various cryptographic algorithms. The research also emphasizes the need for specialized accounting practices that cater to the unique challenges posed by cryptocurrencies. This study bridges the understanding between conventional economic mechanisms and the innovative world of cryptocurrencies, offering inferences that are important for investors, financial analysts, and accountants in the digital age.
Keywords
References
- Altuntaş, Ö. (2012). Merkez Bankası Bağımsızlığı: Avrupa Merkez Bankası ve Türkiye Cumhuriyet Merkez Bankası Karşılaştırması. Pamukkale Üniversitesi Sosyal Bilimler Enstitüsü Dergisi (12), 73-84.
- Belongia, M. T. (1987). Predicting Interest Rates: A Comparison of Professional and Market- based Forecasts. Canadian Parliamentary Review, 69, 9-15.
- Brooke, M. J., Cooper, N., & Scholtes, C. (2000). Inferring Market Interest Rate Expectations from Money Market Rates.
- Chatterjee, R., & Chatterjee, R. (2017). An Overview of the Emerging Technology: Blockchain. 2017 3rd. International Conference on Computational Intelligence and Networks (CINE), 126-127.
- Çetin, O. (2022). Kurumsal Şeffaflığın Sağlanmasında Blok Zinciri Teknolojisinin Önemine Yönelik Bütünleştirici Bir Yaklaşım.
- Dale, S. (2010). The Effect of Changes in Official U.K. Rates on Market Interest Rates since 1987. The Manchester School, 61, 76-94.
- Demirgil, B., & Türkay, H. (2017). Tarihsel Süreç İçerisinde Faiz Olgusunun Kuramsal Açıdan Gelişimi. Cumhuriyet Üniversitesi İktisadi ve İdari Bilimler Dergisi, 18(2), 131-160.
- Erdoğan, S., & Bodur, D. (2020). Blockchain Teknolojisi ve Günümüz Finansal Sistemine Olası Etkileri. Mali Çözüm Dergisi, 30, 281-295.
- Fermo, L. B. (2016). Policy Rate Divergence in the ASEAN-4: Impact of Global Risk Perception and Financial Market Characteristics. Theoretical and Practical Research in Economic Fields (TPREF), 7(13), 30-52.
- Fu, X., Li, M. C., & Molyneux, P. (2021). Credit Default Swap Spreads: Market Conditions, Firm Performance, and the Impact of the 2007–2009 Financial Crisis. Empirical Economics, 60, 2203-2225.