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Impacts of Stock Indices, Oil, and Twitter Sentiment on Major Cryptocurrencies during the COVID-19 First Wave

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  • ?ikolaos A. Kyriazis

Abstract

This paper sets under scrutiny whether the S&P500, oil, and Twitter-based uncertainty about financial markets affect the returns and volatility of three major cryptocurrencies. Estimations are conducted concerning Bitcoin, Bitcoin Cash, and Dogecoin during the first wave of the COVID-19 pandemic. Findings document that Twitter uncertainty exhibits a weaker impact on cryptocurrencies than the S&P500 and crude oil. S&P500 constitutes a positive and significant determinant while impacts of oil are weaker and mixed. The volatility of cryptocurrencies is found to display a non-linear character. Moreover, it is revealed that Dogecoin could be more useful to investors as a speculative tool than Bitcoin and Bitcoin Cash. These outcomes inform the interested reader that traditional investments are influential in a much larger degree towards modern financial assets than investor sentiment when economic conditions are stressed.

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  • ?ikolaos A. Kyriazis, 2021. "Impacts of Stock Indices, Oil, and Twitter Sentiment on Major Cryptocurrencies during the COVID-19 First Wave," Bulletin of Applied Economics, Risk Market Journals, vol. 8(2), pages 133-146.
    • Handle: RePEc:rmk:rmkbae:v:8:y:2021:i:2:p:133-146
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    More about this item

    Keywords

    Twitter Sentiment; Stock; Oil; Cryptocurrency; COVID-19 pandemic.;
    All these keywords.

    JEL classification:

    • E7 - Macroeconomics and Monetary Economics - - Macro-Based Behavioral Economics
    • F3 - International Economics - - International Finance
    • G1 - Financial Economics - - General Financial Markets

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