Any port in a storm: Cryptocurrency safe-havens during the COVID-19 pandemic

【Author】 Corbet, Shaen; Hou, Yang (Greg); Hu, Yang; Larkin, Charles; Oxley, Les

【Source】ECONOMICS LETTERS

【影响因子】1.469

【Abstract】Controlling for the polarity and subjectivity of social media data based on the development of the COVID-19 outbreak, we analyse the relationships between the largest cryptocurrencies and such time varying realisation as to the scale of the economic shock centralised within the rapidly-escalating pandemic. We find evidence of significant growth in both returns and volumes traded, indicating that large cryptocurrencies acted as a store of value during this period of exceptional financial market stress. Further, cryptocurrency returns are found to be significantly influenced by negative sentiment relating to COVID-19. While not only providing diversification benefits for investors, results suggest that these digital assets acted as a safe-haven similar to that of precious metals during historic crises. (C) 2020 Elsevier B.V. All rights reserved.

【Keywords】COVID-19; Pandemic; Sentiment; Cryptocurrency; Safe-haven; Financial crisis

【发表时间】2020 SEP

【收录时间】2022-01-02

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