Industrial Metal and Cryptocurrency Market Plummets: Interdependence, Policy Uncertainty, or Investor Sentiments?

This study examines the interdependence between industrial metals and cryptos, particularly during the recent downturn in both markets. Focusing on the most impacted and comparatively volatile cryptos (Bitcoin, Dashcoin, Ethereum, Litecoin, and Monero) and industrial metals (aluminium, copper, lead, nickel, and zinc) from January 2017 to December 2023, the study employs all varying wavelet techniques. The study confirms the dynamic interdependence structure between the sample metals and cryptos through the bivariate analysis, with events like the global health crisis and the crypto and metal markets crash playing significant roles.