Volume 4, Issue 1
A Critical Investigation of Cryptocurrency: A Comprehensive Review
Ashraf Akhter
Faculty of Management Studies & Research, Aligarh Muslim University (AMU), Aligarh-202002, Indiaashrafamu1@gmail.com
Abstract
The cryptocurrency market, characterized by its extreme volatility and speculative nature, poses significant risk and reward opportunities for investors. This conceptual paper explores the dynamics of risk and volatility within cryptocurrency markets, with a focus on Bitcoin, Ethereum, and other leading digital assets. Drawing exclusively on data from widely recognized online financial sources, this study examines the interplay between cryptocurrency volatility and traditional asset behaviour under market stress conditions. Key crisis events—including the 2016 Brexit referendum, the 2017 market correction, and the 2020 COVID-19 crash—serve as case studies to highlight how cryptocurrencies diverge in risk profiles from conventional assets like Gold and the S&P 500. Additionally, correlations between Bitcoin, Gold, and US Treasury Bonds illustrate the nuanced hedge potential of cryptocurrencies in both short- and long-term investment horizons. This analysis underscores the importance of understanding cryptocurrency behaviour as it matures, while providing insights into the broader financial implications of incorporating these assets into traditional portfolios amidst economic uncertainties.
Key words: Cryptocurrency, Bitcoin, Ethereum, volatility, risk management, market stress, hedge potential.
Citation:
Akhter. A., (2025). A Critical Investigation of Cryptocurrency: A Comprehensive Review. OPJU Business Review, 4(1), 15-30. https://doi.org/10.63825/opjubr.2025.4.1.02