Cryptocurrency Adoption and Financial Market Performance in Southeast Asia

Yusuf Murtadlo Hidayat, Nugraha Nugraha, Annisa Aghniarahma Junia

Abstract


This study examines the relationship between cryptocurrency penetration and market capitalization in five ASEAN countries from 2017 to 2024, utilizing a fixed effects panel regression model. The analysis reveals a statistically significant negative relationship between cryptocurrency penetration and market capitalization, suggesting that increased crypto adoption may be associated with a decrease in overall market capitalization. This counterintuitive finding could be attributed to factors such as investment diversion from traditional assets, regulatory uncertainties, or market volatility. While the average revenue per user does not appear to significantly impact market capitalization, these results underscore the complex interplay between cryptocurrency adoption and traditional financial markets. The findings highlight the need for a nuanced understanding of these dynamics within specific regional contexts, especially considering diverse regulatory frameworks and investor behavior, and suggest avenues for further research.

Keywords


Cryptocurrency, Financial Market, , Panel Data, Southeast Asia

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References


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DOI: https://doi.org/10.17509/jbme.v10i1.73750

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