Investigating impact of gold and bitcoin prices on stock market

Abstract

Stock market performance is a challenging task due to high complexity and volatility in the financial markets There are many factors that influence the stock market and make it volatile. This research perform ordinary least square (OLS) to investigate the relationship between the wider Standard and Poor (S&P 500) US index, and the two independent variables, Bitcoin and gold prices. Daily time series data were collected from January 2015 to December 2022, with a total of 2011 daily observations, to determine whether gold and Bitcoin, or one of them, has a substantial impact on the S&P 500 index by using the Multiple Regression model. The results found that the S&P 500 market index is considerably impacted by both gold and Bitcoin, but gold has a larger impact on the S&P 500 Index than Bitcoin.