How do traditional financial markets affect the NFT market? Insights into assets and sentiment impact
摘要
The ascent of Non-Fungible Tokens (NFTs) as a substantial investment instrument has become popular and noticeable to investors. It is critical for investors to understand the complex relationships between NFTs and the broader economic markets. This study utilizes machine learning and game theory algorithms to examine the relationships between various asset classes and NFT valuation and market trends. We enrich this analysis by integrating sentiment analysis and insights across four key domains (i.e. stocks & bonds, exchange rates, bulk commodities, and cryptocurrencies & DeFi). By focusing our research on THETA, a significant NFT, our analysis uncovers a significant paradigm: cryptocurrencies and stocks show the strongest associations within the NFTs sphere, with Maker exhibiting a volatility closely aligned with the dependent variable (THETA). In contrast, the sentiment index demonstrates weaker association. Regarding the commodities sector, a correlation is evident between the price fluctuations of copper due to its industrial property. These findings reveal the complex relationship between traditional asset classes and NFTs, providing the necessary support for investors to make informed investment decisions and portfolios.