A new study by the BITmarkets exchange confirms that there is no direct correlation between the degree of economic globalization and the size of the cryptocurrency market.
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Cryptocurrency exchange BITmarkets has published the results of a new study that challenges the long-held belief that digital assets such as bitcoin grow alongside the deepening of global economic integration. The study, titled “Globalization and the Cryptocurrency Market: Do They Influence Each Other?,” conducted by the BITmarkets analytical team, concluded that there is no direct link between the degree of economic globalization and the development of the cryptocurrency market.
Key findings of the study:
- Bitcoin emerged during a period of globalization slowdown: Its origins date back to the 2008–2009 financial crisis, which economists refer to as the onset of so-called slowbalization.
- Bitcoin behaves more like a technology stock than digital gold: The correlation between bitcoin and the Nasdaq index is around 0.5, while with gold it is only slightly above 0.2. This suggests that, in terms of market behavior, bitcoin is more similar to technology stocks than traditional stores of value.
“We focused on three key indicators of globalization and examined whether they had any correlation with the development of the cryptocurrency market. Our analysis showed that while globalization has been stagnating since the 2008 crisis and has even been declining in recent years, the cryptocurrency market has been growing steadily since then,” says Ali Daylami, chief analyst at BITmarkets. “In our view, digital assets represent a truly new, independent force that is developing outside the traditional economic framework.”
Read here: BITmarkets.com
How the study was conducted
The study used several recognized indicators of globalization:
- Trade Openness Index
- KOF Globalization Index
- Frankel Index
On the cryptocurrency side, the research team focused primarily on bitcoin due to its long history and key position in the market. Its price development, adoption trends, and market capitalization were examined in detail.
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Implications for the financial sector
The study comes at a time when the total market capitalization of cryptocurrencies is around $3.4 trillion. Bitcoin maintains a share of approximately 60%. The research shows that this growth has occurred despite – or perhaps because of – the slowdown in traditional globalization.
The analysis also confirmed that while globalization peaked around 2008–2009 and then slowed further after the COVID-19 pandemic, cryptocurrencies gained attention from both small users and institutional investors during that time.
According to BITmarkets, cryptocurrencies should therefore be viewed as a separate phenomenon, independent of globalization.
“The data shows that cryptocurrencies are carving out their own space within the global financial system,” explains Daylami. “Instead of evolving according to traditional economic metrics associated with globalization, an alternative financial infrastructure is emerging around them that transcends established boundaries.”
The full study is available here.
About BITmarkets
BITmarkets is an international cryptocurrency exchange that is changing the way retail and institutional clients work with digital assets. It focuses on making cryptocurrencies accessible, understandable, and integrated with the traditional financial environment. The platform keeps 99.9% of funds in cold storage and offers customer support in more than 17 languages. Investors can trade more than 200 cryptocurrencies and gain access to daily market analysis and a variety of educational materials.
For more information about BITmarkets’ licensing and regulatory framework, as well as general information and contact details, please visit www.bitmarkets.com or the exchange’s page on CoinMarketCap.com.
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Contacts:
Spot trading services are provided by UAB BITmarkets, an authorized virtual currency exchange operator and virtual currency deposit wallet in Lithuania. It operates under registration number 306062346, is supervised by the Financial Crime Investigation Service, and operates under the BITmarkets trademark.
The trust placed in the BITmarkets brand is crucial to us. Please be wary of fraudulent websites, messages, or social media profiles that impersonate BITmarkets or use similar branding (such as the name or logo). Always verify the URL and ensure that you are communicating exclusively through our official channels. BITmarkets never requests sensitive information through unofficial or unsolicited messages. If in doubt, please contact our official customer support.
Crypto assets are unregulated, decentralized, and highly volatile. They carry significant risks, and investors may lose all of their invested capital.
