The Relationship between Cryptocurrencies and COVID-19 Pandemic
12 Pages Posted: 26 Apr 2020
Date Written: April 25, 2020
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: Suggested Citation