Transitions in the cryptocurrency market during the COVID-19 pandemic: A network analysis

David Vidal-Tomás

Finance Research Letters, 2021, vol. 43, issue C

Abstract: In this letter, we identify the transitions of the cryptocurrency market during the pandemic by means of a network analysis. This method allows us to observe that COVID-19 significantly affected cryptocurrencies during a short period of financial panic, from 12 March 2020 to 1 April 2020, giving rise to a remarkable increase of market synchronisation. However, since April 2020, the cryptocurrency market progressively recovered its initial state, since the strong synchronisation, observed as a consequence of COVID-19, continuously disappeared. Therefore, our analysis highlights different market phases, which can be related to some of the phenomena reported in the existing literature.

Keywords: Cryptocurrencies; COVID-19; Network; Herding; Efficiency; Diversification (search for similar items in EconPapers)
JEL-codes: G01 G10 G40 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (15)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:43:y:2021:i:c:s1544612321000623

DOI: 10.1016/j.frl.2021.101981

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