Unknown

Dataset Information

0

Are Bitcoin and Ethereum safe-havens for stocks during the COVID-19 pandemic?


ABSTRACT: Utilizing the WHO COVID-19 pandemic statement, we test Bitcoin and Ethereum as safe-havens for stocks. We find that the two largest cryptocurrencies are suitable as short-term safe-havens. The DCC and cDCC results show that their daily returns tend to correlate with S&P500 return negatively during the pandemic. The regression results also robustly support the safe-haven features and uncover that Ethereum is possibly a better safe-haven than Bitcoin. However, we note that both coins exhibit high volatilities. Before (during) the pandemic daily volatilities of Bitcoin, Ethereum, gold, and the S&P500 are 3.44% (9.11%), 4.34% (10.96%), 0.89% (2.19%), and 1.27% (6.07%), respectively.

SUBMITTER: Dwita Mariana C 

PROVIDER: S-EPMC7566681 | biostudies-literature | 2021 Jan

REPOSITORIES: biostudies-literature

altmetric image

Publications

Are Bitcoin and Ethereum safe-havens for stocks during the COVID-19 pandemic?

Dwita Mariana Christy C   Ekaputra Irwan Adi IA   Husodo Zaäfri Ananto ZA  

Finance research letters 20201016


Utilizing the WHO COVID-19 pandemic statement, we test Bitcoin and Ethereum as safe-havens for stocks. We find that the two largest cryptocurrencies are suitable as short-term safe-havens. The DCC and cDCC results show that their daily returns tend to correlate with S&P500 return negatively during the pandemic. The regression results also robustly support the safe-haven features and uncover that Ethereum is possibly a better safe-haven than Bitcoin. However, we note that both coins exhibit high  ...[more]

Similar Datasets

| S-EPMC7246008 | biostudies-literature
| S-EPMC7245251 | biostudies-literature
| S-BSST1055 | biostudies-other
| 2346925 | ecrin-mdr-crc
| S-EPMC7248582 | biostudies-literature
| S-EPMC8006753 | biostudies-literature
| S-EPMC7408907 | biostudies-literature
| S-EPMC7887250 | biostudies-literature
| S-EPMC8112651 | biostudies-literature
| 2383510 | ecrin-mdr-crc