Pandemic Versus Financial Shocks: Comparison of Two Episodes on the Bitcoin Market
The result's identifiers
Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F62156489%3A43110%2F21%3A43922234" target="_blank" >RIV/62156489:43110/21:43922234 - isvavai.cz</a>
Result on the web
<a href="https://doi.org/10.3790/aeq.67.2.113" target="_blank" >https://doi.org/10.3790/aeq.67.2.113</a>
DOI - Digital Object Identifier
<a href="http://dx.doi.org/10.3790/aeq.67.2.113" target="_blank" >10.3790/aeq.67.2.113</a>
Alternative languages
Result language
angličtina
Original language name
Pandemic Versus Financial Shocks: Comparison of Two Episodes on the Bitcoin Market
Original language description
With its rising popularity, the Bitcoin has also become increasingly independent from global financial markets. Recently, it has joined the class of alternative assets. We use the newly developed wavelet methodology to analyze daily data to compare the COVID-19 pandemic at the beginning of 2020 with the bear market episode at the end of 2018. In both cases, attention signals and a general panic are the main drivers of the Bitcoin fluctuations. We show that the Bitcoin's dynamic is more complex than the dynamics of standard financial assets. The Bitcoin is, on the one hand, subject to pandemic shocks but also represents an important source of attention signals. On the other hand, because the Bitcoin additionally reacts on an emotional basis, it might react faster than other assets and thus creates a market signal itself. Moreover, we identify short cycles (of several days), which may possibly be related to demand factors, while long cycles (of several weeks) seem to mirror supply factors and might be related to Bitcoin mining in China. Finally, the analysis underlines the importance of continuous financial education and communication by the supervisory authorities about new, alternative financial assets.
Czech name
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Czech description
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Classification
Type
J<sub>SC</sub> - Article in a specialist periodical, which is included in the SCOPUS database
CEP classification
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OECD FORD branch
50206 - Finance
Result continuities
Project
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Continuities
I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace
Others
Publication year
2021
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data specific for result type
Name of the periodical
Applied Economics Quarterly
ISSN
1611-6607
e-ISSN
1865-5122
Volume of the periodical
67
Issue of the periodical within the volume
2
Country of publishing house
DE - GERMANY
Number of pages
29
Pages from-to
113-141
UT code for WoS article
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EID of the result in the Scopus database
2-s2.0-85132358002