The Relationship between Cryptocurrencies and COVID-19 Pandemic

12 Pages Posted: 26 Apr 2020

See all articles by Ender Demir

Ender Demir

Istanbul Medeniyet University

Mehmet Huseyin Bilgin

Istanbul Medeniyet University

Gokhan Karabulut

Istanbul University; istanbul üniversitesi

Aslı Cansın Doker

Erzincan Binali Yıldırım University

Date Written: April 25, 2020

Abstract

We examine the relationship between cryptocurrencies (namely Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP)) and COVID-19 cases/deaths. 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 shows the hedging role of cryptocurrencies against the uncertainty raised by COVID-19.

Keywords: Bitcoin, Ethereum, Ripple, Wavelet, COVID-19

JEL Classification: G12, G15, D81

Suggested Citation

Demir, Ender and Bilgin, Mehmet Huseyin and Karabulut, Gokhan and Doker, Aslı Cansın, The Relationship between Cryptocurrencies and COVID-19 Pandemic (April 25, 2020). Available at SSRN: https://ssrn.com/abstract=3585147 or http://dx.doi.org/10.2139/ssrn.3585147

Ender Demir (Contact Author)

Istanbul Medeniyet University ( email )

Cevizli Mahallesi, Gürbüz Sk. No:6,
İstanbul, 34685
Turkey

Mehmet Huseyin Bilgin

Istanbul Medeniyet University ( email )

D-100 Karayolu
Merdivenkoy Mevkii No:6/1 Goztepe/Kadıkoy
Istanbul
Turkey

Gokhan Karabulut

Istanbul University ( email )

Istanbul
Turkey

istanbul üniversitesi ( email )

34459 Istanbul
Turkey
05309304154 (Phone)
34684 (Fax)

Aslı Cansın Doker

Erzincan Binali Yıldırım University ( email )

Erzincan
Turkey

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