Authors: Assistant Professor Mr. C.Thamizhanban, G. Mahadharshan
Abstract: The emergence of cryptocurrencies has brought significant changes to the global financial system by introducing decentralized digital assets and block chain-based transaction mechanisms. Since the introduction of Bitcoin in 2008, cryptocurrencies have evolved into an important segment of financial markets, attracting individual investors, institutional participants and financial intermediaries. This study examines the impact of cryptocurrencies on global financial markets by focusing on market growth, price volatility, correlations with traditional financial assets and regulatory implications. It explores the relationship between cryptocurrency markets and conventional investment instruments, including equities, commodities and foreign exchange, to understand their potential role in portfolio diversification and financial risk management. The study also considers major challenges associated with cryptocurrency adoption, such as speculative trading, cybersecurity threats, regulatory uncertainty and potential systemic risks. Using secondary data from reliable financial databases, market reports and regulatory publications, the research aims to assess the changing relationship between cryptocurrencies and traditional financial markets.
