COVID-19 pandemic improves market signals of cryptocurrencies–evidence from Bitcoin, Bitcoin Cash, Ethereum, and Litecoin
Samuel Asumadu Sarkodie, Maruf Yakubu Ahmed, Phebe Asantewaa Owusu
Abstract
The COVID-19 global pandemic has disrupted business-as-usual, hence, affecting sustained economic development across countries. However, it appears economic uncertainty following COVID-19 containment measures favor market signals of cryptocurrencies. Here, this study empirically and structurally investigates the implication of COVID-19 health outcomes on market prices of Bitcoin, Bitcoin Cash, Ethereum, and Litecoin. Evidence from the novel Romano-Wolf multiple hypotheses reveal COVID-19 shocks spur Litecoin by 3.20-3.84%, Bitcoin by 2.71-3.27%, Ethereum by 1.43-1.75%, and Bitcoin Cash by 1.34-1.62%.
Topics & Concepts
CryptocurrencyPandemicCoronavirus disease 2019 (COVID-19)CashEconomicsMonetary economics2019-20 coronavirus outbreakFinanceBiologyInternal medicineMedicineOutbreakVirologyInfectious disease (medical specialty)Computer scienceDiseaseComputer securityBlockchain Technology Applications and SecurityMarket Dynamics and VolatilityCOVID-19 Pandemic Impacts