Title: COVID-19 pandemic and cryptocurrencies: fresh evidence from time-frequency analysis

Authors: Saeed Sazzad Jeris; Md. Monirul Islam

Addresses: Department of Business Administration, Shahjalal University of Science and Technology, Sylhet-3114, Bangladesh ' Department of Business Administration, Shahjalal University of Science and Technology, Sylhet-3114, Bangladesh

Abstract: The purpose of this study is to explore the co-movement between COVID-19 cases and eight cryptocurrencies. Cryptocurrencies (Bitcoin, Ethereum, Tether, Binance Coin, Dogecoin, Ripple, USD Coin and Bitcoin Cash) are selected based on their market capitalisations. Daily data is considered from 30 January 2020 to 19 May 2021. The continuous wavelet transform (wavelet coherence) is used to determine the time-varying co-movement between COVID-19 instances and cryptocurrencies in this research. COVID-19 and cryptocurrency prices are interlinked, as found using the wavelet method. Similar results were discovered for Tether, Binance Coin, and Ripple. Although this seems to be the case, Dogecoin appears to be an alternative investment during COVID-19. The research is unique and adds to the existing body of knowledge, even though some of the results address the function of cryptocurrencies in times of crisis. The research findings indicate that investors and crypto enthusiasts should keep an eye out in the scenario of COVID-19 scenarios when making investments in cryptocurrency marketplaces.

Keywords: COVID-19; cryptocurrencies; Bitcoin; wavelet.

DOI: 10.1504/IJBC.2022.123004

International Journal of Blockchains and Cryptocurrencies, 2022 Vol.3 No.1, pp.80 - 94

Received: 24 Aug 2021
Accepted: 05 Feb 2022
Published online: 19 May 2022 *