Work

Fear Sentiment, Uncertainty, and Bitcoin Price Dynamics: The Case of COVID-19

Year: 2020

Type: article

Abstract: This paper studies the impact of fear sentiment caused by the coronavirus pandemic on Bitcoin price dynamics. We construct a new proxy for coronavirus fear sentiment using hourly Google search queries on coronavirus-related words. The results show that market volatility has been exacerbated by fear sentiment as the result of an increase in search interest in coronavirus. Moreover, we find that negative Bitcoin returns and high trading volume can be explained by fear sentiment regarding the coronavirus. Our results also show that Bitcoin fails to act as a safe haven during the pandemic.

Source: Emerging Markets Finance and Trade

DOI: 10.1080/1540496x.2020.1787150

Authors: Conghui Chen, Lanlan Liu, Ningru Zhao

Institutions: University of Northampton, Soochow University, Nanjing Audit University

Language: English

Topic: COVID-19 Pandemic Impacts

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

Open Access status: green

Funder: Nanjing Audit University

OpenAlex ID: W3045217887