Investigation of the Relationship Between the Exchange Index and Bitcoin of Countries According to the Most and Least Crypto Investors by Ratio of Population

Bitcoin has the highest price and volume among cryptocurrencies considered as an alternative to traditional investment tools. In the study, it was aimed to determine the relationship between the countries in the world that use crypto currency most and least and Turkey's largest stock market index values and Bitcoin price value in proportion to the population. Considering that the fluctuation in Bitcoin price movements started after 2012, monthly data for January 2013 and May 2021 were used. The financial relationship of the series, whose basic statistical characteristics were specified, was determined using cointegration and Granger causality tests and VAR analysis. In the relationship between Denmark, Japan, Turkey, Nigeria, and Vietnam stock exchanges and Bitcoin, the only one-way causality ascertained to Bitcoin was from the Danish and Japanese stock markets. As a result of the VAR analysis, the increases in the Danish and Japanese stock markets were found out to cause a decrease in Bitcoin. Consequently, stock market indices were revealed to help investors reach an opinion about Bitcoin price movement. In parallel with this result, it was considered that it would be beneficial to minimize the risk by diversifying the portfolio between the stock market indices and Bitcoin in the context of investment preferences.