Every crypto breath in the world : the current global position of the cryptocurrency market and future prediction

This study was motivated by the breakthrough of cryptocurrencies in 2018. The other main reasons behind the motivation are the total market capitalisation of one trillion-dollar diversification possibilities and the lack of preceding scientific research to identify the portfolio diversification possibilities of cryptocurrencies from many angles. Four empirical studies were conducted to provide a holistic view of cryptocurrency as an investment tool. The first study investigated the portfolio diversification possibilities between cryptocurrencies and traditional financial markets. A quantitative method was employed with Cointegration, ARDL bound testing approach, causality, and co-movement testing. Applying Modern portfolio theory to identify the diversification possibilities between the aforementioned markets enabled the study to highlight how investors can reap the benefits of cryptocurrencies. The second study extended the investigation of the portfolio diversification possibilities of cryptocurrency by including precious metals and cryptocurrencies in the same investment basket. Investors switch from traditional investment assets, such as equity and debt market instruments, to precious metal markets to reap benefits. Therefore, this study investigates how cryptocurrency can be an alternative source of investment to include in an investment portfolio. The daily precious metal and cryptocurrency data from 2017 to 2022 was utilised through an ARDL framework to obtain the Cointegration between cryptocurrency, precious metal and across cryptocurrencies. Modern portfolio theory is used to identify the diversification possibilities in this study with different portfolio diversification strategies. The third study clarified the cryptocurrency stakeholders to identify the global perception of cryptocurrency investments. A qualitative method was employed with sentiment analysis, followed by data extractions from the global databases using machine learning algorithms. The study identified the percentage of stakeholder groups' positive, negative, and neutral perceptions of cryptocurrency. The main obstacles hindering cryptocurrency investment growth are the fear of current scams, lack of definitional issues and the absence of a legal framework in some countries. The fourth study included the findings from the first, second and third studies to develop a cryptocurrency predictive model by factoring in macroeconomic variables. Panel data regression with fixed and dynamic effects was employed to analyse the data from 2017 to 2002. The findings suggest the impact of each macroeconomic variable selected in the study for the cryptocurrency price changes while adding more significance to technological variables. The overall findings provide strong support for the portfolio diversification possibilities of cryptocurrencies. Inclusions of the wide range of investment classes, exploring stakeholder perception and highlighting the macroeconomic variables' influence on the cryptocurrency price prediction generate new insights and valuable comparisons about cryptocurrency markets for academia, crypto issuers, investors, government, policymakers, and fund managers to use as an investment and decision-support tools. Keywords: Cryptocurrency, ARDL, Financial Markets, Cointegration, Causality, Portfolio diversification, Precious Metals, Predictive model.Doctor of Philosoph