Cryptocurrency Adoption and Its Influence on Traditional Financial Markets

Cryptocurrency Adoption and Its Influence on Traditional Financial Markets

S.V.S.P.P. Jaya Sankar Krishna1, Akankhya Panda2, Pappu Sindhuja3

1Research Scholar, Department of Finance, GITAM School of Business, GITAM Deemed to be University, Visakhapatnam District, India

2Research Scholar, Department of Human Resource Management, GITAM School of Business, GITAM Deemed to be University, Visakhapatnam District, India

3Research Scholar, Department of Marketing, GITAM School of Business, GITAM Deemed to be University, Visakhapatnam District, India

Email: jayasankar.sandy333@gmail.com1, akankhya08panda@gmail.com2, sindhusudheer111@gmail.com3

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Abstract - The surge in cryptocurrency popularity has sparked significant interest in its impact on traditional financial markets. This study examines the multifaceted relationship between cryptocurrency adoption and established financial systems. Through a comprehensive literature review, we analyze previous research on the subject, investigating the influence of cryptocurrencies on stock markets, banking institutions, and regulatory frameworks. Methodologically, this research employs a mix of qualitative and quantitative approaches to assess cryptocurrency adoption trends, investor behavior, and market dynamics. The findings highlight both the disruptive potential and challenges posed by widespread cryptocurrency adoption, emphasizing the volatility, regulatory responses, and evolving investor sentiments. By exploring case studies and future implications, this paper offers insights into the evolving landscape of finance, providing recommendations for stakeholders navigating this intersection between emerging digital currencies and traditional financial markets.

Key Words:  Cryptocurrency, Financial Markets, Adoption, Influence.