The relationship between cryptocurrencies and COVID-19 pandemic

We examine the relationship between cryptocurrencies (namely Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP)) and COVID-19 cases/deaths. This will help explore whether cryptocurrencies can serve as a hedge against COVID-19. The wavelet coherence analysis indicates that there is initially a negative...

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Bibliographic Details
Published in:Eurasian economic review 2020-09, Vol.10 (3), p.349-360
Main Authors: Demir, Ender, Bilgin, Mehmet Huseyin, Karabulut, Gokhan, Doker, Asli Cansin
Format: Article
Language:English
Subjects:
Coherence
Coronaviruses
COVID-19
Digital currencies
Economics
Economics and Finance
Original Paper
Pandemics
Uncertainty
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Summary:We examine the relationship between cryptocurrencies (namely Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP)) and COVID-19 cases/deaths. This will help explore whether cryptocurrencies can serve as a hedge against COVID-19. The wavelet coherence analysis indicates that there is initially a negative relationship between Bitcoin and the number of reported cases and deaths; however, the relationship becomes positive during the later period. The findings for Ethereum and Ripple are also similar but with weaker interactions. This supports the hedging role of cryptocurrencies against the uncertainty raised by COVID-19.
ISSN:1309-422X
2147-429X
DOI:10.1007/s40822-020-00154-1