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The relationship between cryptocurrencies and COVID-19 pandemic

Author

Listed:
  • Ender Demir

    (University of Social Sciences
    Istanbul Medeniyet University)

  • Mehmet Huseyin Bilgin

    (Istanbul Medeniyet University)

  • Gokhan Karabulut

    (Istanbul University)

  • Asli Cansin Doker

    (Erzincan Binali Yildirim University)

Abstract

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.

Suggested Citation

  • Ender Demir & Mehmet Huseyin Bilgin & Gokhan Karabulut & Asli Cansin Doker, 2020. "The relationship between cryptocurrencies and COVID-19 pandemic," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 10(3), pages 349-360, September.
    • Handle: RePEc:spr:eurase:v:10:y:2020:i:3:d:10.1007_s40822-020-00154-1
    DOI: 10.1007/s40822-020-00154-1
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