Abstract:

This paper analyzes the volatility and returns of cryptocurrencies compared to traditional investment assets such as gold and the S&P 500 index, aiming to provide insights into the risks and benefits of these investment options. A partial goal of the work is to verify the scientific question of whether cryptocurrencies have shown different behavior during economic crises since 2008. The findings reveal a strong positive correlation between Bitcoin, Ethereum, and the S&P 500 index, indicating their sensitivity to macroeconomic factors. At the same time, it is confirmed that cryptocurrencies demonstrate significantly higher volatility than traditional assets, making them a crucial consideration for investors seeking portfolio diversification. Correlation analysis suggests that Bitcoin may partially function as a store of value, while Litecoin shows weaker links to traditional assets. Furthermore, the research confirms that cryptocurrencies, particularly Bitcoin, react differently to economic crises—not only in developed economies but also during global downturns. In such periods, Bitcoin has often behaved more like a speculative investment rather than a reliable safe-haven asset.