Engagement of true intelligence in financial forecasting: interactions of blockchained sectors and artificial intelligence
A new study finds that advances in artificial intelligence, tracked by the NASDAQ AI and Robotics Index, strongly influence prices in 15 major cryptocurrency sectors, especially during market extremes. AI acts as a main source of market shocks, with the biggest impact on decentralized finance (DeFi), non-fungible tokens (NFTs), and smart contracts. Using advanced statistical methods, the research shows AI can signal crypto market shifts but warns that combining both may weaken portfolio diversification.
What it examines
This study explores how artificial intelligence (AI) and blockchain-based cryptocurrency sectors interact, using advanced quantile-on-quantile and cross-multiquantilogram methods. By analyzing 15 cryptocurrency sectors and the NASDAQ AI index, the research aims to reveal patterns, spillovers, and predictive relationships to guide investors and policymakers.
What it concludes
The study finds AI strongly influences cryptocurrency sectors, especially during extreme market events. AI can serve as an early warning for crypto price changes, but combining both in one portfolio may reduce diversification. Applications include risk management, portfolio strategy, and policy design. Future research should expand sector coverage and explore long-term effects.
Evidence objects
AI developments, tracked by the NASDAQ AI and Robotics Index, consistently drive price movements in 15 major crypto sectors, with the strongest impact on DeFi, NFT, and Smart Contracts during market extremes.
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The study introduces advanced quantile-on-quantile and cross-multiquantilogram methods, revealing asymmetric, nonlinear spillovers and predictability in crypto markets, especially during booms and crashesa novel approach for understanding market shocks.
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AI acts as an early warning signal for crypto markets, but combining AI and crypto assets may reduce diversification benefits; findings are limited by short data periods and few tokens per sector.
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This paper uniquely explores dynamic connectedness between the NASDAQ AI index and 15 sectoral cryptocurrency indices using advanced quantile-on-quantile and cross-multiquantilogram methods. Its sectoral granularity, focus on AI-crypto spillovers, and actionable diversification insights offer novel, timely contributions, making it compelling for readers interested in AI-driven finance and DeFi.
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Raw abstract and provenance
- … between the NASDAQ artificial intelligence index and sectoral … of financial operation-based blockchain applications in their interaction with artificial intelligence. The cross-…
Source row: 699 · abstract type: snippet