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The impact of cyber-attacks on different dimensions of cryptocurrency markets

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  • Umar, Muhammad

Abstract

Cryptocurrency has recorded tremendous growth in their value in recent years which has attracted the attention of investors, policy makers, academicians and especially hackers. Since cryptocurrencies operate in cyberspace, they are frequently targeted by hackers aiming to rob crypto investors. So, this study explores how cyber-attacks affect cryptocurrency price, return and liquidity. The daily data regarding all these variables ranges from June 1, 2020, to August 3, 2021. The results of multiple linear regression with categorical independent variable and quantile regression show that cryptocurrency price is not affected by cyber-attacks. However, cyber-attacks on crypto exchanges result in loss for investors but cyber-attacks on other assets enhances cryptocurrency value. Furthermore, cyber-attacks on cryptocurrency do not affect their liquidity but the overall cyber-attacks enhance cryptocurrency liquidity. These findings suggest that crypto investors should not panic in the wake of cyber-attacks on cryptocurrency markets. Policy makers should view cryptocurrencies as assets having safe heaven properties to make better policies.

Suggested Citation

  • Umar, Muhammad, 2025. "The impact of cyber-attacks on different dimensions of cryptocurrency markets," Technology in Society, Elsevier, vol. 81(C).
    • Handle: RePEc:eee:teinso:v:81:y:2025:i:c:s0160791x25000557
    DOI: 10.1016/j.techsoc.2025.102865
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    References listed on IDEAS

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    JEL classification:

    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
    • K24 - Law and Economics - - Regulation and Business Law - - - Cyber Law

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