Understanding the Dynamics and Interconnectedness of Cryptocurrency and Stock Markets: A Survey

In the era of digital finance, the convergence of cryptocurrencies and traditional stock markets has become an area of profound interest and meticulous scrutiny. This systematic literature review embarks on a comprehensive exploration of the evolving relationship between these two intricate financial domains. Through a rigorous process involving the synthesis and in-depth analysis of a substantial body of relevant research, the primary objective of this study is to illuminate the multifaceted dynamics, temporal variations, and influential factors that intricately shape the correlation between cryptocurrencies and stock markets. The methodology employed for this review involves a meticulous examination of 34 scholarly articles spanning from the inception of cryptocurrencies in 2009 to August 2023, with a particular focus on the association between cryptocurrencies and the stock market. Within this extensive body of literature, four major research streams were discerned and are thoroughly discussed in this review. These streams encompass investigations into the correlation between cryptocurrencies and stock market. In the course of this systematic review, seven compelling research questions emerge, offering tantalizing avenues for future exploration. The findings have several implications for the current state of the literature on cryptocurrency and the stock market, including identifying study gaps and potential future research initiatives.