Co-Movement of COVID-19 and Bitcoin: Evidence from Wavelet Coherence Analysis
12 Pages Posted: 11 May 2020 Last revised: 20 May 2020
Date Written: May 9, 2020
We apply wavelet method to daily data of COVID-19 world deaths and daily Bitcoin prices from 31th December 2019 to 29th April 2020. We find especially for the period post April 5 that levels of COVID-19 caused a rise in Bitcoin prices. We contribute both to the fast-growing body of work on the financial impacts of COVID-19, as well as to ongoing consideration of whether Bitcoin is a safe haven investment. Our results should be of great interest to both scholars and policy makers, as well as investment professionals interested in the financial implications of both COVID-19 and cryptocurrencies.
Keywords: Co-movement; COVID-19; Bitcoin; Wavelet; Safe haven
JEL Classification: C58; F37; G14; G15; Q31
Suggested Citation: Suggested Citation