The Role of Stock Market Indicators in Assessing the Economic Impact of Brexit on the Euro-Pound (GBP) Exchange Rate, Different Types of Bitcoin, and Fraud Detection

Abstract

This study examines the impact of Brexit on various financial markets, particularly focusing on the EUR/GBP exchange rate, the FTSE 100 stock index, and Bitcoin prices. Following the United Kingdom's decision to leave the European Union in June 2016, markets experienced unprecedented levels of volatility due to increased economic uncertainty. The exchange rate between the Euro and the Pound saw significant fluctuations, demonstrating a sharp depreciation of the Pound initially, followed by some stabilization and recovery over time. The FTSE 100 index also exhibited notable declines and recoveries in the aftermath of Brexit, influenced by investor sentiment and geopolitical factors. Meanwhile, Bitcoin emerged as a popular digital asset during times of financial crisis, showing a strong correlation with traditional market dynamics and providing an alternative safe-haven investment option. In addition to market reactions, the study explores the increasing challenges of fraud detection in the cryptocurrency space, underlining the importance of advanced technologies like AI and blockchain analytics. Overall, the research highlights the critical role of enhanced risk management strategies, regulatory measures, and public education in addressing the ongoing challenges posed by Brexit-related market dynamics. Concurrently, Bitcoin's price experienced considerable fluctuations, rising during periods of heightened global uncertainty, such as the 2020 COVID-19 pandemic. In addition, fraud detection in the cryptocurrency market saw a steady increase in fraudulent transactions, prompting the need for improved regulatory oversight and technological solutions. This research underscores the interconnectedness of global financial markets and highlights the critical role of advanced data analytics, machine learning, and regulatory frameworks in navigating volatile environments.