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The Impact of the Russia-Ukraine War on the Cryptocurrency Market

Author

Listed:
  • Isaac Appiah-Otoo

    (1 Business Administration, College of Management Science, Chengdu University of Technology, China)

Abstract

This research provides the very first empirical investigation of the impact of the Russia-Ukraine war on the cryptocurrency market (Bitcoin trading volume, and returns). The findings indicate that the Russia-Ukraine war impedes Bitcoin trading volume. A 1% increase in the Russia-Ukraine war leads to a 0.2% reduction in Bitcoin trading volume. The findings also indicate that the impact is more pronounced during the post-invasion period, especially after one week of the invasion. Finally, the Russia-Ukraine war predicts Bitcoin returns in both the short and long run.

Suggested Citation

  • Isaac Appiah-Otoo, 2023. "The Impact of the Russia-Ukraine War on the Cryptocurrency Market," Asian Economics Letters, Asia-Pacific Applied Economics Association, vol. 4(1), pages 1-5.
    • Handle: RePEc:ayb:jrnael:84
    DOI: 2023/03/09
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    References listed on IDEAS

    as
    1. Marie Briere & Kim Oosterlinck & Ariane Szafarz, 2015. "Virtual Currency, Tangible Return: Portfolio Diversification with Bitcoins," Post-Print CEB, ULB -- Universite Libre de Bruxelles, vol. 16(6), pages 365-373.
    2. Appiah-Otoo, Isaac & Song, Na, 2021. "The impact of ICT on economic growth-Comparing rich and poor countries," Telecommunications Policy, Elsevier, vol. 45(2).
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Nidhal Mgadmi & Tarek Sadraoui & Ameni Abidi, 2024. "Causality between stock indices and cryptocurrencies before and during the Russo–Ukrainian war," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 71(2), pages 301-323, June.
    2. Wanidwaranan, Phasin & Wongkantarakorn, Jutamas & Padungsaksawasdi, Chaiyuth, 2025. "Geopolitical risk, herd behavior, and cryptocurrency market," The North American Journal of Economics and Finance, Elsevier, vol. 80(C).
    3. Almeida, José & Gonçalves, Tiago Cruz, 2026. "Cryptocurrencies and economic sanctions," The North American Journal of Economics and Finance, Elsevier, vol. 81(C).
    4. Kreuzer, Christian & Laschinger, Ralf & Priberny, Christopher & Benninghoff, Sven, 2024. "Cryptocurrencies as a vehicle for capital exodus: Evidence from the Russian–Ukrainian crisis," Finance Research Letters, Elsevier, vol. 69(PB).
    5. Lu, Xunfa & Huang, Nan & Mo, Jianlei, 2024. "Time-varying causalities from the COVID-19 media coverage to the dynamic spillovers among the cryptocurrency, the clean energy, and the crude oil," Energy Economics, Elsevier, vol. 132(C).
    6. Ibrahim Salah Ali Alkhadrawi & Dirin Mchirgui & Younes Boujelbene, 2025. "On the Connectedness Between Bitcoin, Gold, Gold-Backed Cryptocurrencies and the G7 Banking Sector Stock Indices During Crises: Evidence from Quantile Vector Autoregression and Temporal Frequency Connectivity approach," Economic Alternatives, University of National and World Economy, Sofia, Bulgaria, issue 4, pages 990-1025, Desember.
    7. Danai Likitratcharoen & Pan Chudasring & Chakrin Pinmanee & Karawan Wiwattanalamphong, 2023. "The Efficiency of Value-at-Risk Models during Extreme Market Stress in Cryptocurrencies," Sustainability, MDPI, vol. 15(5), pages 1-21, March.
    8. Florin Aliu & Artor Nuhiu, 2025. "Analyzing the Interconnectedness Within the Volatile Crypto Market: Evidence from Two Consequent Non-economic Shocks," SAGE Open, , vol. 15(2), pages 21582440251, June.

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    Keywords

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    JEL classification:

    • C01 - Mathematical and Quantitative Methods - - General - - - Econometrics
    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War

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