We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
Enduring relief or fleeting respite? Bitcoin as a hedge and safe haven for the US dollar.
- Authors
Conlon, Thomas; Corbet, Shaen; McGee, Richard
- Abstract
Can technology protect investors from extreme losses? This paper investigates the short- and long-run hedging and safe haven properties of Bitcoin for the US dollar over the period 2010–2023, incorporating the COVID-19-related market turmoil. Our findings reveal that (i) Bitcoin acts as a strong hedge for all US dollar currency pairs examined, (ii) Bitcoin functions as a weak safe haven for the US dollar at short investment horizons, as indicated by a limited relationship during acute negative price movements, (iii) Bitcoin, instead of acting as a safe haven may, instead, increase aggregate risk at long horizons during periods of extreme losses. The analysis, performed using a series of horizon-dependent econometric tests, provides evidence of some US dollar risk-reduction benefits from Bitcoin but limited potential for enduring relief from long-run extreme negative US dollar rate movements.
- Subjects
U.S. dollar; BITCOIN; INVESTORS; ELECTRONIC money; MARKET volatility; PRICES
- Publication
Annals of Operations Research, 2024, Vol 337, Issue 1, p45
- ISSN
0254-5330
- Publication type
Article
- DOI
10.1007/s10479-024-05884-y