Title: How did the COVID-19 pandemic affect the information flows in cryptocurrency market?

Authors: Thi Tuan Anh Tran; Phuong Nam Truong

Addresses: University of Economics Ho Chi Minh City, 59C Nguyen Dinh Chieu Street, Vo Thi Sau Ward, District 3, Ho Chi Minh City, Vietnam ' University of Economics Ho Chi Minh City, 59C Nguyen Dinh Chieu Street, Vo Thi Sau Ward, District 3, Ho Chi Minh City, Vietnam

Abstract: This study employs transfer entropy to analyse information flows among eight cryptocurrencies from January 1, 2018, to August 25, 2023. It reveals that the COVID-19 pandemic and the LUNA-UST collapse significantly influenced how these assets transmit and receive information. Following the pandemic, the results suggest a decrease in information exchange, particularly for Dogecoin and Bitcoin during the post-LUNA-UST collapse period. Specifically, Bitcoin demonstrates a moderate and consistent influence, while Tron emerges as the most impactful entity across all periods. Before COVID-19, all entities actively exchanged information, with Dogecoin being the most dynamic currency. The pandemic significantly affected the information dynamics of Ethereum and Litecoin, while Cardano and Tron played key roles in dissemination. Ripple experienced marginal impacts, and Binance Coin remained largely unaffected. In the post-LUNA-UST collapse period, some entities exhibited reduced information flow. Dogecoin was notably more affected than security tokens, suggesting heightened investor caution after the crisis.

Keywords: cryptocurrencies; COVID-19 pandemic; LUNA-UST collapse; transfer entropy.

DOI: 10.1504/IJBSR.2025.149079

International Journal of Business and Systems Research, 2025 Vol.19 No.4, pp.465 - 482

Received: 08 Jan 2024
Accepted: 14 Apr 2025
Published online: 13 Oct 2025 *

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