Did cryptocurrencies exhibit log-periodic power law signature during the second wave of COVID-19?

【Author】 Ghosh, Bikramaditya; Papathanasiou, Spyros; Pergeris, Georgios

【Source】ECONOMIC NOTES

【影响因子】0.000

【Abstract】Many studies have associated cryptocurrencies with bubbles, especially during stressed market conditions such as the recent outbreak of the second wave of COVID-19. Although the majority of studies have focused on Bitcoin, we investigate the predictability of bubble formation in the cryptocurrency market by using the log-periodic power law and we uncover some important stylized facts of this market. Our sample consists of data for a selection of 15 cryptocurrencies for the period between 1 January 2021 and 1 September 2021 which coincides with the second wave of COVID-19. We analyse 86 speculative bubbles, and we find that the cryptocurrency market has three times higher drawdown over equities during stressed market conditions.

【Keywords】COVID-19; cryptocurrencies; energy consumption; finance; financial bubbles log-periodic power law; transitory policy

【发表时间】

【收录时间】2022-10-02

【文献类型】实证数据

【主题类别】

区块链治理-市场治理-数字货币