ECONOMIC IMPLICATIONS OF DIGITAL CURRENCIES: MARKET DYNAMICS AND INFLUENTIAL FACTORS
Abstract
The global financial landscape has undergone a significant transformation with the emergence of digital currencies, notably Bitcoin and Ethereum. This study employs a comprehensive analysis of key market parameters to elucidate the economic impact of these digital currencies. By examining market capitalization, volatility, adoption rates, consumer price indices, and investor sentiments, a nuanced understanding of their economic ramifications is derived. The research methodology encompasses correlation and regression analyses, coupled with sentiment analysis. Data is drawn from reputable sources, providing a robust foundation for exploring intricate relationships within digital currencies and their economic influence. Market capitalization serves as a barometer of overall trends, revealing a positive correlation with GDP rates. The study delves into market volatility, uncovering substantial price fluctuations that impact economic stability. Diverse adoption rates across nations are explored, emphasizing the pivotal role of ownership in shaping market dynamics. For understanding the economic impact of digital currencies is pivotal in the current financial landscape. The positive correlation between digital currency market capitalization and GDP rates quantifies the influence of these currencies on economic indicators. Sentiment analysis reveals a mildly positive outlook within regulatory texts, contributing to a nuanced understanding of market perceptions. As digital currencies gain prominence, their economic implications become increasingly significant. This study contributes valuable insights into market dynamics, adoption patterns, and the interplay between digital currencies and traditional economic indicators. A holistic understanding of these factors is essential for policymakers, investors, and stakeholders navigating the evolving landscape of global finance.
Keywords: Digital currencies, cryptocurrency, market capitalization, market volatility, adoption rates, consumer price index, investor sentiments, economic impact.
