Did Bitcoin Act as An Antidote to the Chinese Equity Market and Booster to Altcoins during the Novel Coronavirus Outbreak?

28 Pages Posted: 4 Mar 2020

See all articles by Rabin K. Jana

Rabin K. Jana

Indian Institute of Management Raipur

Debojyoti Das

Woxsen School of Business

Date Written: February 26, 2020

Abstract

In this study, we examine the resilience of Bitcoin (BTC) to hedge Chinese aggregate and sectoral equity markets and the returns spillover to Altcoins onset the Novel Coronavirus outbreak. We observe that BTC is a weak hedge during the overall period and a weak safe haven onset the crisis. Besides, BTC is a weak hedge, diversifier and a weak safe haven for the sectoral equity indexes. Overall, gold outperforms BTC in hedging and safe haven perspectives with respect to Chinese equity markets. Lastly, we find that the rise in Altcoin prices are majorly due to spillover from BTC prices.

Keywords: Novel Coronavirus, Bitcoin, China, Altcoin, Hedge, Safe haven

JEL Classification: C22, G15

Suggested Citation

Jana, Rabin and Das, Debojyoti, Did Bitcoin Act as An Antidote to the Chinese Equity Market and Booster to Altcoins during the Novel Coronavirus Outbreak? (February 26, 2020). Available at SSRN: https://ssrn.com/abstract=3544794 or http://dx.doi.org/10.2139/ssrn.3544794

Rabin Jana

Indian Institute of Management Raipur ( email )

IIM Raipur
GEC Campus, Sejbahar
Raipur, IN 492015
India

Debojyoti Das (Contact Author)

Woxsen School of Business ( email )

Woxsen School of Business
Hyderabad
Hyderabad, IN 502345
India

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