DefinePK

Abstract

This study examines the mediating role of cryptocurrency volatility specifically Bitcoin in the relationship between the 2025 U.S. universal tariff policy and the volatility of the Russian stock market. By using the daily data from March 27 to April 21, 2025 and applying regression models, the research finds that while U.S. tariff shocks do not directly influence Russian stock market volatility, Bitcoin volatility significantly correlates with fluctuations in the RTS Index. These findings suggest that cryptocurrencies act as financial transmission channels during periods of global economic uncertainty. The results emphasize the need for emerging markets like Russia to consider crypto volatility in risk management. Although limited by a short event window and focus on a single policy event, the study offers critical insights into the interconnectedness of digital assets and traditional financial markets.