The dynamic interaction between cryptocurrencies and alternative investment instruments

The aim of this study is to determine the relationship between Bitcoin, the pioneer of cryptocurrencies, and alternative investment instruments such as the securities market, gold, silver, the dollar and deposit interest rates, using a sample from Turkey for the period from January 2, 2019 to November 21, 2025. To identify the interconnectedness relationships among the variables in the short, medium, and long term, analyses were conducted using the frequency-decomposition connectedness method proposed by Baruník and Křehlík (2018). The results show that the interconnectedness relationships among investment instruments are similar in the short and long term but are dominant in the medium term. In both the short and long term, Gold (2.17), USD/TRY (1.0), and BTC are net transmitters, Silver (-2.95) and BIST100 (-0.55) are net receivers, and MV Interest Rate (0.04) is neutral. Therefore, at this frequency, Gold is a strong transmitter and the investment instrument that transmits the highest net shock to alternative investment instruments. In the medium term, gold is the most dominant investment instrument, while BTC, USD/TRY, and BIST100 are net volatility receivers. It was concluded that BTC and USD/TRY are net conductors of volatility in the short term, but net buyers in the medium term.