This study explores the complex link between Bitcoin, the US Dollar (USD), Gold (XAU), and the Nasdaq Composite Index. It examines how correlations and potential dependencies change over time using extensive statistical and econometric approaches. Our examination starts by looking at how Bitcoin changed from being a specialized digital asset to what it is today—a widely used financial tool. By contrasting them with conventional fiat currencies like the USD, we examine their volatility, liquidity, and market capitalization characteristics. In addition, we evaluate Bitcoin's function in the larger financial environment as a value store and a speculative asset. We now examine the interactions between Bitcoin, the US dollar, Gold, and the Nasdaq Composite Index, concentrating on their correlations and probable causative connections. To understand the fundamental causes of these correlations, we investigate the effects of macroeconomic variables, regulatory changes, and investor sentiment on them. Our research suggests that there are numerous and dynamic correlations between Bitcoin, the US dollar, Gold, and the Nasdaq that change over time in response to shifting market dynamics. The relationship between Bitcoin and conventional financial instruments like the USD, XAU, and the Nasdaq remains a crucial subject of inquiry and exploration as it continues to develop and be accepted in mainstream finance. In summary, this study offers important new understandings of the complex relationship between Bitcoin, the US Dollar, Gold, and the Nasdaq Composite Index.

Bitcoin, cryptocurrency, global acceptance, digital economy, exchange rates, global indices

https://doi.org/10.64192/nd2arqf

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