COVID-19 pandemic improves market signals of cryptocurrencies-evidence from Bitcoin, Bitcoin Cash, Ethereum, and Litecoin

Samuel Asumadu Sarkodie; Maruf Yakubu Ahmed; Phebe Asantewaa Owusu

doi:10.1016/j.frl.2021.102049

COVID-19 pandemic improves market signals of cryptocurrencies-evidence from Bitcoin, Bitcoin Cash, Ethereum, and Litecoin

Financ Res Lett. 2022 Jan:44:102049. doi: 10.1016/j.frl.2021.102049. Epub 2021 Apr 6.

Authors

Samuel Asumadu Sarkodie¹, Maruf Yakubu Ahmed¹, Phebe Asantewaa Owusu¹

Affiliation

¹ Nord University Business School (HHN). Post Box 1490, 8049 Bodø, Norway.

Abstract

The COVID-19 global pandemic has disrupted business-as-usual, hence, affecting sustained economic development across countries. However, it appears economic uncertainty following COVID-19 containment measures favor market signals of cryptocurrencies. Here, this study empirically and structurally investigates the implication of COVID-19 health outcomes on market prices of Bitcoin, Bitcoin Cash, Ethereum, and Litecoin. Evidence from the novel Romano-Wolf multiple hypotheses reveal COVID-19 shocks spur Litecoin by 3.20-3.84%, Bitcoin by 2.71-3.27%, Ethereum by 1.43-1.75%, and Bitcoin Cash by 1.34-1.62%.

Keywords: Bitcoin; Bitcoin Cash; COVID-19 Pandemic; Commodity market; Cryptocurrency; Economic uncertainty; Ethereum; Litecoin; Market signals; Romano-Wolf multiple hypotheses.