EconPapers    
Economics at your fingertips  
 

Bitcoin and Global Political Uncertainty – Evidence from the U.S. Election Cycle

Tobias Burggraf ()
Additional contact information
Tobias Burggraf: WHU - Otto Beisheim School of Management

Economics Bulletin, 2020, vol. 40, issue 1, 727-742

Abstract: In this study, we investigate the impact of political uncertainty on Bitcoin. Introducing the U.S. federal election cycle as a proxy for political uncertainty, we find that (i) an increase in political uncertainty leads to a decrease in Bitcoin return, (ii) political uncertainty has the strongest impact on Bitcoin six and three months prior the election and decreases as the election date approaches, and (iii) the effect is more pronounced in the left and right tail of the distribution. The results shed a new light on the property of Bitcoin being a safe haven asset and provide important information for investors and policymakers.

Keywords: Global political uncertainty; Bitcoin; Quantile regression (search for similar items in EconPapers)
JEL-codes: F4 H3 (search for similar items in EconPapers)
Date: 2020-03-07
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.accessecon.com/Pubs/EB/2020/Volume40/EB-20-V40-I1-P62.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ebl:ecbull:eb-20-00047

Access Statistics for this article

More articles in Economics Bulletin from AccessEcon
Bibliographic data for series maintained by John P. Conley ().

 
Page updated 2020-06-02
Handle: RePEc:ebl:ecbull:eb-20-00047