<![CDATA[General background: The increasing integration of digital technologies has transformed global financial systems, with cryptocurrencies, especially Bitcoin, emerging as prominent financial instruments. Specific background: Amid widespread adoption by institutions and individuals, Bitcoin has garnered attention for its potential to influence traditional financial markets, particularly during periods of global uncertainty such as the COVID-19 pandemic. Knowledge gap: While much has been discussed about the theoretical influence of cryptocurrencies, empirical evidence on their actual impact on global financial indices remains inconclusive. Aims: This study investigates the effect of Bitcoin trading volume and the COVID-19 pandemic on a composite index comprising advanced (S&P 500), emerging (KLSE), and developing (DZ) market indices from July 2018 to December 2022. Results: Using a fixed-effects panel data model, the findings reveal that past market performance significantly predicts current performance, while Bitcoin trading volume and the pandemic show no statistically significant impact. Novelty: The study uniquely combines market classifications and utilizes a composite index to empirically isolate the influence of Bitcoin across diverse economies. Implications: These results suggest that, despite Bitcoin's rising prominence, its direct influence on global financial markets may be limited in the short term, underscoring the need for continued investigation as regulatory frameworks and adoption rates evoHighlight : Minimal Impact: Bitcoin trading volume and the COVID-19 pandemic had no statistically significant effect on global financial market indices (2018–2022). Strong Market Correlation: Global financial indices showed strong interdependence, reflecting synchronized market behavior. Future Outlook: Despite current findings, evolving crypto regulations and technologies may alter their financial market influence. Keywords : Cryptocurrencies, Bitcoin, Trading Volume, COVID-19, Financial Indices]]>
