IDEAS home Printed from https://ideas.repec.org/a/eee/riibaf/v67y2024ipbs0275531923002283.html
   My bibliography  Save this article

Investing in cryptocurrency before and during the COVID-19 crisis: Hedge, diversifier or safe haven?

Author

Listed:
  • Riahi, Rabeb
  • Bennajma, Amel
  • Jahmane, Abderrahmane
  • Hammami, Helmi

Abstract

This paper examines the safe-haven, diversification, and hedging properties of cryptocurrencies against stock market declines. We use daily data for two sub-periods: pre-Covid-19 and during Covid-19. The sample includes the stock market indices of the 10 countries most affected by the pandemic and the eight most popular cryptocurrencies based on their market capitalization over the study period. We found that Bitcoin, Cardano, Ethereum, and Binance have generated portfolio diversification benefits for investors during the Covid-19 outbreak, while Tether and the USD Coin have acted as safe-haven assets. Additionally, the findings reveal that gold has been an effective diversification tool for investors during the Covid-19 pandemic, while West Texas Intermediate (WTI) crude oil has positively impacted stock index returns. Our results are of great practical interest to academics and policymakers, as well as investors, and provide relevant information on cryptocurrency variations during times of crisis.

Suggested Citation

  • Riahi, Rabeb & Bennajma, Amel & Jahmane, Abderrahmane & Hammami, Helmi, 2024. "Investing in cryptocurrency before and during the COVID-19 crisis: Hedge, diversifier or safe haven?," Research in International Business and Finance, Elsevier, vol. 67(PB).
    • Handle: RePEc:eee:riibaf:v:67:y:2024:i:pb:s0275531923002283
    DOI: 10.1016/j.ribaf.2023.102102
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0275531923002283
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ribaf.2023.102102?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    Stock markets; Cryptocurrencies; Gold; WTI; Covid-19;
    All these keywords.

    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:riibaf:v:67:y:2024:i:pb:s0275531923002283. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ribaf .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.