Navigating Cryptocurrency Policy Uncertainty

26 Pages Posted: 7 Nov 2022

See all articles by Jiazhen Wang

Jiazhen Wang

Zhengzhou University

Yiwen Fang

affiliation not provided to SSRN

Xiaolu Hu

RMIT University - School of Economics, Finance and Marketing

Angel Zhong

RMIT University - School of Economics, Finance and Marketing

Abstract

This paper examines the dynamic interplay between cryptocurrency policy uncertainty and fluctuations in a wide range of financial assets, including global equity markets, green equities and bonds, as well as commodities. In the quest for a hedge and safe haven asset, we find that developed equity markets, green equities and commodity markets are promising candidates to provide protection against policy uncertainty in the cryptocurrency sector. Our findings also provide useful guidance by identifying the performance of hedging and safe haven assets across various market states.

Keywords: Hedge, Safe haven, Cryptocurrency market, Policy uncertainty, Quantile on quantile

Suggested Citation

Wang, Jiazhen and Fang, Yiwen and Hu, Xiaolu and Zhong, Angel, Navigating Cryptocurrency Policy Uncertainty. Available at SSRN: https://ssrn.com/abstract=4270752 or http://dx.doi.org/10.2139/ssrn.4270752

Jiazhen Wang

Zhengzhou University ( email )

100 Science Avenue
Zhengzhou, CO 450001
China

Yiwen Fang

affiliation not provided to SSRN ( email )

No Address Available

Xiaolu Hu (Contact Author)

RMIT University - School of Economics, Finance and Marketing ( email )

Level 12, 239 Bourke Street
Melbourne, Victoria 3000
Australia

Angel Zhong

RMIT University - School of Economics, Finance and Marketing ( email )

Level 12, 239 Bourke Street
Melbourne, Victoria 3000
Australia

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