Sustainability | Free full text | COVID-19 pandemic: is the crypto market a safe haven? The impact of the first wave

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This study examined whether the crypto market is a safe haven. The study argues that during the first wave of the COVID-19 crisis, gold and oil, as typical global commodities, could have been diversifiers. The study developed a unique global COVID-19 composite index that measures the time varying movements of the COVID-19 pandemic each day. The study used OLS (minus ordinary squares), quantile and robust regressions to test whether the COVID-19 crisis had a significant direct influence on the crypto market. The estimates from the OLS, quantile and robust regressions confirmed that there was no statistically significant direct influence of the COVID-19 crisis on the crypto market during the first wave period. However, the study found fallout from risky assets (S&P 500) in the crypto market, with Tether as an exception. Due to this particular characteristic, Tether could be a safe haven in the crypto market.

This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

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