A new academic study has found that cryptocurrencies such as XRP remain heavily influenced by traditional financial markets rather than acting as independent hedges.
The research, published in the Journal of Risk and Financial Management, analysed market data from 2018 to early 2026 and found that stocks, government bonds, and sovereign risk indicators drive most price movements.
The study showed that cryptocurrencies largely absorb signals from traditional assets, with limited influence over broader financial markets.
Researchers at Yildiz Technical University used advanced statistical tools to track information flow across asset classes, including G10 equities, commodities, and bond markets.
They found that stock indices, ten-year bond yields, and credit default swaps act as primary transmitters of market signals, while crypto assets tend to follow these trends.
However, during major crises, the flow of influence can shift, with sovereign risk indicators becoming dominant drivers across both traditional and crypto markets.
The findings suggest crypto portfolios remain closely tied to traditional finance, challenging the narrative that digital assets offer strong diversification benefits in current market conditions.
At the time of reporting, XRP price was $1.43.