Work

Russia–Ukraine War and Bitcoin Volatility Dynamics

Year: 2026

Type: article

Abstract: In this paper, we examine the Bitcoin price and volatility responses to the Russia-Ukraine war. Our findings suggest that the attention on the war leads to decreased Bitcoin returns and increased Bitcoin realized volatility, jump volatility, and continuous volatility. In contrast, the attention surrounding the sanctions against Russia, particularly those involving the SWIFT system, positively impacts the Bitcoin market by increasing its price and reducing jump volatility. These results support the notion that Bitcoin serves as an alternative system for cross-border transactions, suggesting that the SWIFT sanctions against Russian financial institutions are perceived as beneficial for Bitcoin.

Source: The Journal of Alternative Investments

DOI: 10.3905/jai.2026.019

Authors: Kose John, Alexander Kurov, Jingrui Li, Chuyi Sun

Institutions: New York University, West Virginia University, Stevens Institute of Technology

Language: English

Topic: Market Dynamics and Volatility

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

Open Access status: green

OpenAlex ID: W4403135626

FWCI:

Cites: 22

Cited by:

Related to: 10