The relationship between cryptocurrencies and COVID-19 pandemic

Demir E., BİLGİN M. H., KARABULUT G., DOKER A. C.

EURASIAN ECONOMIC REVIEW, cilt.10, sa.3, ss.349-360, 2020 (ESCI) identifier identifier

  • Yayın Türü: Makale / Tam Makale
  • Cilt numarası: 10 Sayı: 3
  • Basım Tarihi: 2020
  • Doi Numarası: 10.1007/s40822-020-00154-1
  • Dergi Adı: EURASIAN ECONOMIC REVIEW
  • Derginin Tarandığı İndeksler: Emerging Sources Citation Index (ESCI), Scopus
  • Sayfa Sayıları: ss.349-360
  • Anahtar Kelimeler: Bitcoin, COVID-19, Ethereum, Ripple, Wavelet coherence
  • İstanbul Üniversitesi Adresli: Evet

Özet

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.