Global economic downturns have hampered global economic progress in recent years. It began with the outbreak of pandemic COVID19 and its successive descendants, most notably the Russia-Ukraine War, the Sri Lankan Debt Crisis, and others, all of which have harmed nations' and people's financial health. As a result of the regular downward trend in the value of investments, investors have suffered significant losses. Bitcoin (BTC) has the greatest market capitalization in the virtual asset category, and Nifty50 stocks, the most popular index, has the biggest market capitalization in the dematerialized asset category. A comparison of these two financial instruments over two time periods will aid in the development of reasonable investment decisions. The purpose of this research is to look into the link between these two assets and compare monthly returns across two time periods. The first period (April 2018 to March 2020) is the least volatile, while the second period (April 2020 to March 2022) includes big recent economic downturns. The paper also tries to figure out if there is any correlation between the two market capitalization leaders. The researchers ultimately concluded that although both Bitcoin and Nifty50 stocks had a positive correlation in both periods but when it comes to risk aversion in times of turmoil, an Indian investor should focus on Nifty50 trading rather than cryptocurrencies.

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Keywords: Economic Downturns, Bitcoin, Nifty50, Volatility, Correlation.