The impact of cryptocurrency-related cyberattacks on return, volatility, and trading volume of cryptocurrencies and traditional financial assets

Hamid Cheraghali, Peter Molnár, Mattis Storsveen and Florent Veliqi

International Review of Financial Analysis, 2024, vol. 95, issue PB

Abstract: We investigate the impact of cryptocurrency-related cyberattacks on the cryptocurrency market and traditional financial markets. The dataset consists of historical cyberattack data and trading data for twenty cryptocurrencies, three cryptocurrency uncertainty indices, five payment companies, four stock indices, a commodity index, and gold. We find that cyberattacks are associated with negative returns, increased volatility, and increased trading volume not only for the cryptocurrencies but also for the payment companies, the financial and technology sectors, and the general stock market. However, the impact of cyberattacks on cryptocurrencies has been decreasing over time, while the impact on payment companies and the financial sector has been increasing. Moreover, gold prices have shown a positive response to these cyberattacks. These results underscore the need for enhanced cybersecurity measures in the fintech sector and may inform both policymakers and market participants.

Keywords: Cybercrime; Cyberattacks; Cryptocurrencies; Stock market; Gold (search for similar items in EconPapers)
Date: 2024
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finana:v:95:y:2024:i:pb:s1057521924003715

DOI: 10.1016/j.irfa.2024.103439

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