The effect of risks and uncertainties on crypto asset prices

The rapid advancement of technology affects the production, industry, finance and banking sectors as well as the preferences of investors. Its quality is defined as money, virtual money, digital money, assets, etc. by different countries and experts. Although it is called crypto assets, the use of crypto assets as a technology-based investment tool is becoming increasingly widespread. The fact that the crypto asset market has a very high volatility and speculative structure can provide high profits in a short time, but on the contrary, it can also cause large losses. On the other hand, the preference of crypto assets is increasing due to the lack of a central structure in the face of this rising trend. Although the blockchain technology that forms the basis of crypto assets is reliable, the high risk and volatility of crypto assets may reduce their preference by investors. In this study, the effects of risks and uncertainties on crypto asset prices were investigated. The relationship between six indices representing risk and uncertainty and six leading crypto assets by volume in the crypto markets was examined for the period 2017-2023. As a result of the study, the Johansen Cointegration test was applied since the findings of the unit root tests determined that the variables were not stationary but were stationary with the first difference. It has been observed that there is cointegration and a long-term relationship between the six crypto assets and the uncertainty and risk indices used in the analysis. It was concluded that there is a positive relationship with the CPU, EMV-ID, GPR indices and a negative relationship with the TEU index. Key words: Cryptoasset, blockchain, risk and uncertainty, index, volatility.