The Influence of Market Volatility of Cryptocurrency, Foreign Exchange, and Gold Toward Return on Investment

Abstract

Investing in Indonesia has undergone significant changes in recent years with growing interest in cryptocurrencies, foreign exchange and gold. While these instruments offer attractive potential returns, the high level of volatility poses a challenge for investors. Lack of understanding about risk management and the different characteristics of each instrument can lead to suboptimal investment decisions. This study aims to analyze the effect of cryptocurrency, foreign exchange, and gold market volatility on return on investment (ROI). This research uses a quantitative approach with secondary data in the form of historical Bitcoin prices, US Dollar exchange rates, and gold prices during the period 2019 to 2023. The analysis used in this research is statistical testing in the form of multiple linear regression methods using SPSS software version 30. The results show that cryptocurrency market volatility has a negative and significant effect on ROI. Foreign exchange market volatility has a negative and insignificant effect on ROI. Gold market volatility has a negative and insignificant effect on ROI.