Examining the relationship between Borsa Istanbul trading volumes and Bitcoin trading volumes with the Toda Yamamoto approach 2017:01 – 2021:12

Abstract

Cryptocurrencies emerged with the invention of Bitcoin in 2008 and in a short time they managed to attract the attention of a significant number of investors. Since 2012, cryptocurrency markets have become markets where unpredictable transaction volumes take place around the world. Bitcoin is the most recognized asset which has the highest trading volume in cryptocurrency markets today. This is due to the dominance effect of Bitcoin on cryptocurrency markets. It is a matter of curiosity in the world and in our country whether savings are transferred from traditional financial markets to cryptocurrency markets. In this study, the possible relationships between Bitcoin trading volumes and Bitcoin price changes between 2017 and 2021, and the trading volumes realized in Borsa Istanbul (BIST) and the BIST 100 index were examined with the Granger causality approach and the direction of these relationships was tried to be determined using the Toda Yamamoto causality model. As a result of the examination, it has been determined that there is no causal relationship between Bitcoin trading volumes and Borsa Istanbul trading volumes according to the Toda Yamamoto approach.