Exploring the Interrelationship Between Energy, Geopolitical Risk, and Bitcoin Based Green Business Strategies

Pooja Kumari, Amit Shankar, Rsha Alghafes, Laura Broccardo and Steven T. Walsh

Business Strategy and the Environment, 2025, vol. 34, issue 6, 6654-6669

Abstract: This study examined how Bitcoin, energy prices, and geopolitical risk interact by examining the first four moments (mean, variance, skewness, and kurtosis) of their return distributions by using wavelet analysis. The findings reveal that the co‐movement patterns of energy index, geopolitical risk index, and Bitcoin prices are time and frequency sensitive. During the turbulent period of 2020–2024, significant cross effect was observed at medium‐ and long‐term time scales in the relationship between the energy index and the geopolitical risk index. Similarly, in the case of Bitcoin and the geopolitical risk index, significant cross‐effects were detected at medium‐ and short‐term time scales. From 2021 onwards, a strong coherence is observed at high and medium frequencies for all four moment pairs among Bitcoin, energy prices, and geopolitical risk. In terms of the Bitcoin‐energy relationship, significant co‐movement in mean and volatility is noted throughout most of the sample period and across different frequency bands. Moreover, cross‐skewness and cross‐kurtosis connections are more prominent at short‐ and medium‐term horizons, especially during covid pandemic. These insights are valuable for investors and policymakers in risk management.

Date: 2025
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