What is it about?
Our objective in this paper is to explore the impact of 21 terrorist attacks on the risk and return of cryptocurrencies. This is motivated by the rapid increase in Bitcoin and other cryptocurrency prices in conjunction with uncertainty about cryptocurrency fundamental value and how this value is determined. Using daily cryptocurrency returns and the event study methodology, we estimate cryptocurrency abnormal returns around terrorist activities.
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Why is it important?
Our findings indicate that terrorist attacks positively contribute to the returns of cryptocurrencies whilst the attacks also result in short-term risk shifting behavior for different cryptocurrencies.
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This page is a summary of: An investigative study of links between terrorist attacks and cryptocurrency markets, Journal of Business Research, August 2022, Elsevier,
DOI: 10.1016/j.jbusres.2022.04.019.
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