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The Effect of COVID-19 Transmission on Cryptocurrencies

Author

Listed:
  • Nesrine Dardouri
  • Abdelkader Aguir

    (ESPI - Ecole Supérieure des Professions Immobilières)

  • Mounir Smida

    (Université de Sousse)

Abstract

In recent years, Bitcoin and other cryptocurrencies like Ethereum and Dogecoin have emerged as important asset classes in general, and diversification and hedging instruments in particular. The recent COVID-19 pandemic has provided the chance to examine and assess cryptocurrencies' behavior during extremely stressful times. The methodology of this study is based on an estimate using the ARDL model from 22 January 2020 to 12 March 2021, allowing us to analyze the long-term and short-term relationship between cryptocurrencies and COVID-19. Our results demonstrate that there is cointegration between the chosen cryptocurrencies in the market and COVID-19. The results indicate that Bitcoin, ETH, and DOGE prices were affected by COVID-19, which means that the pandemic seriously affected the three cryptocurrency prices.

Suggested Citation

  • Nesrine Dardouri & Abdelkader Aguir & Mounir Smida, 2023. "The Effect of COVID-19 Transmission on Cryptocurrencies," Post-Print hal-04173029, HAL.
    • Handle: RePEc:hal:journl:hal-04173029
    DOI: 10.3390/risks11080139
    Note: View the original document on HAL open archive server: https://hal.science/hal-04173029
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    References listed on IDEAS

    as
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    5. Iqbal, Najaf & Fareed, Zeeshan & Wan, Guangcai & Shahzad, Farrukh, 2021. "Asymmetric nexus between COVID-19 outbreak in the world and cryptocurrency market," International Review of Financial Analysis, Elsevier, vol. 73(C).
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    COVID-19; coronavirus; cryptocurrency; price volatility; liquidity;
    All these keywords.

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