Interdependencies Between Cryptocurrency Markets, Precious Metals and Energy Resources

In a rapidly changing world where no market or economy is secure, interconnectivity is becoming a key feature of almost all social and economic systems. As a brand-new digital asset, cryptocurrencies are quickly taking over the world economy. Cryptocurrencies are becoming alternative investments as a store of value compared to precious metals. The purpose of this study is to examine the connections between cryptocurrencies, precious metals, and energy resources using structured numerical data. To achieve this goal, two approaches are employed to create networks that reveal relationships between cryptocurrencies (Bitcoin, Ethereum, Cardano, Chainlink, Litecoin, Stellar, and Ripple), precious metals (Gold, Silver, and Platinum), and energy resources (Oil and Natural Gas) based on their daily prices and returns. The interdependence of the networks is further examined to reveal similarities between the created networks. The proposed methodology facilitates an understanding of the dynamics of cryptocurrency markets, the factors that influence them, and the potential for future research to expand and include additional cryptocurrencies.