Safe haven or risky hazard? Bitcoin during the Covid-19 bear market

Conlon, Thomas; McGee, Richard

doi:10.1016/j.frl.2020.101607

Cited by 585 publications

(387 citation statements)

References 37 publications

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“…In addition, our results indicate that Bitcoin cannot serve as a safe haven, because Bitcoin returns do not respond independent of the market turmoil caused by the coronavirus. As market conditions deteriorated, Bitcoin returns exhibited the positive correlation with the markets (Conlon and Mcgee 2020;Corbet, Larkin, and Lucey 2020).…”

Section: Fear Sentiment and Bitcoin Returnsmentioning

confidence: 99%

Fear Sentiment, Uncertainty, and Bitcoin Price Dynamics: The Case of COVID-19

Chen

Liu

Zhao

2020

Emerging Markets Finance and Trade

238

153

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This paper studies the impact of fear sentiment caused by the coronavirus pandemic on Bitcoin price dynamics. We construct a new proxy for coronavirus fear sentiment using hourly Google search queries on coronavirus-related words. The results show that market volatility has been exacerbated by fear sentiment as the result of an increase in search interest in coronavirus. Moreover, we find that negative Bitcoin returns and high trading volume can be explained by fear sentiment regarding the coronavirus. Our results also show that Bitcoin fails to act as a safe haven during the pandemic.

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Section: Fear Sentiment and Bitcoin Returnsmentioning

confidence: 99%

Fear Sentiment, Uncertainty, and Bitcoin Price Dynamics: The Case of COVID-19

Chen

Liu

Zhao

2020

Emerging Markets Finance and Trade

238

153

View full text Add to dashboard Cite

show abstract

“…Similarly, [26] studies financial contagion via cross-correlation analysis, [27] uses a GARCH(1,1) model, while [28] is a qualitative overview of financial contagion. [29] , [30] use a value at risk measure to study safe havens in the cryptocurrency market. [31] uses existing metrics and tests (such as approximate entropy, Lyapunov Exponents, t-tests and F-tests) to study the predictability of price fluctuations.…”

Section: Introductionmentioning

confidence: 99%

Changes to the extreme and erratic behaviour of cryptocurrencies during COVID-19

James

Menzies

Chan

2021

Physica A: Statistical Mechanics and its Applications

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“…For instance, Onali (2020) finds that US stock market returns are negatively affected by the COVID-19 reported deaths in France and Italy but not by the number of cases and deaths in the US itself. Corbet et al (2020) and Conlon and McGee (2020) conclude that cryptocurrency markets do not act as hedges, or a safe haven for investors during the COVID-19 outbreak. Other studies investigate herding in the stock and the cryptocurrency markets.…”

Section: Insert Figure [1] Around Herementioning

confidence: 99%

A Note on Regulatory Responses to Covid-19 Pandemic: Balancing Banks’ Solvency and Contribution to Recovery

Bitar

Tarazi

2020

SSRN Journal

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We see spikes in unemployment rates and turbulence in the securities markets during the COVID-19 pandemic. Governments are responding with aggressive monetary expansions and large-scale economic relief plans. We discuss the implications on banks and the economy of prudential regulatory intervention to soften the treatment of non-performing loans and ease bank capital buffers. We apply these easing measures on a sample of Globally Systemically Important Banks (G-SIBs) and show that these banks can play a constructive role in sustaining economic growth during the COVID-19 pandemic. However, softening the treatment of non-performing loans along with easing capital buffers should not undermine banks' solvency in the recovery period. Banks should maintain usable buffer in the medium-term horizon to absorb future losses, as the effect of COVID-19 on the economy might take time to fully materialise.

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Safe haven or risky hazard? Bitcoin during the Covid-19 bear market

Cited by 585 publications

References 37 publications

Fear Sentiment, Uncertainty, and Bitcoin Price Dynamics: The Case of COVID-19

Fear Sentiment, Uncertainty, and Bitcoin Price Dynamics: The Case of COVID-19

Changes to the extreme and erratic behaviour of cryptocurrencies during COVID-19

A Note on Regulatory Responses to Covid-19 Pandemic: Balancing Banks’ Solvency and Contribution to Recovery

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