IDEAS home Printed from https://ideas.repec.org/a/wsi/fracta/v30y2022i06ns0218348x22500992.html
   My bibliography  Save this article

Has The Covid-19 Pandemic Affected The Flow Of Information Among Cryptocurrencies?

Author

Listed:
  • KEROLLY KEDMA FELIX DO NASCIMENTO

    (Department of Statistics and Informatics, Federal Rural University of Pernambuco, Rua Dom Manoel de Medeiros s/n, Dois Irmãos 52171-900, Recife/PE, Brazil)

  • FÃ BIO SANDRO DOS SANTOS

    (Department of Statistics and Informatics, Federal Rural University of Pernambuco, Rua Dom Manoel de Medeiros s/n, Dois Irmãos 52171-900, Recife/PE, Brazil)

  • JADER SILVA JALE

    (Department of Statistics and Informatics, Federal Rural University of Pernambuco, Rua Dom Manoel de Medeiros s/n, Dois Irmãos 52171-900, Recife/PE, Brazil)

  • Sà LVIO FERNANDO ALVES XAVIER JÚNIOR

    (��Department of Statistics, State University of Paraíba, Rua Baraúnas, No. 351, Bodocongó, Campina Grande/PB 58109-753, Campina Grande, Paraíba, Brazil)

  • TIAGO A. E. FERREIRA

    (Department of Statistics and Informatics, Federal Rural University of Pernambuco, Rua Dom Manoel de Medeiros s/n, Dois Irmãos 52171-900, Recife/PE, Brazil)

Abstract

In this paper, we investigated the impact of the COVID-19 pandemic on the cryptocurrency market. The direction of information transfer between the 67 digital cryptocurrency markets was evaluated, in particular Bitcoin, Ethereum, Litecoin, and Ripple, and we determined which of them were the most influential in the markets. The comparison of the first half of 2019 (outside the pandemic of COVID-19) against the first semester of 2020 (during the COVID-19 pandemic) was used to analyze the pandemic influence. We found two distinct behaviors: (i) in 2019, Bitcoin, as the primary capitalization bond, presented a more substantial transfer of information than the other cryptocurrencies toward Bitcoin → Ripple (0.0541), followed by Litecoin → Ripple (0.0522); (ii) in 2020, the most substantial transfers of information occurred from Ethereum to other cryptocurrencies (Litecoin, Bitcoin, and Ripple, in that order). In this period, the weakest transfers happened from Litecoin → Ripple and in the opposite direction, with equal value (0.0104). Our results indicate that there was a change in the direction of the information flow between the investigated cryptocurrencies, where ETH became the dominant cryptocurrency during the period of turbulence caused by the COVID-19 pandemic.

Suggested Citation

  • Kerolly Kedma Felix Do Nascimento & Fã Bio Sandro Dos Santos & Jader Silva Jale & Sã Lvio Fernando Alves Xavier Jãšnior & Tiago A. E. Ferreira, 2022. "Has The Covid-19 Pandemic Affected The Flow Of Information Among Cryptocurrencies?," FRACTALS (fractals), World Scientific Publishing Co. Pte. Ltd., vol. 30(06), pages 1-11, September.
    • Handle: RePEc:wsi:fracta:v:30:y:2022:i:06:n:s0218348x22500992
    DOI: 10.1142/S0218348X22500992
    as

    Download full text from publisher

    File URL: http://www.worldscientific.com/doi/abs/10.1142/S0218348X22500992
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1142/S0218348X22500992?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wsi:fracta:v:30:y:2022:i:06:n:s0218348x22500992. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Tai Tone Lim (email available below). General contact details of provider: https://www.worldscientific.com/worldscinet/fractals .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.