The Impact of the Russia-Ukraine War on the Cryptocurrency Market

Abstract

This research provides the very first empirical investigation of the impact of the Russia-Ukraine war on the cryptocurrency market (Bitcoin trading volume, and returns). The findings indicate that the Russia-Ukraine war impedes Bitcoin trading volume. A 1% increase in the Russia-Ukraine war leads to a 0.2% reduction in Bitcoin trading volume. The findings also indicate that the impact is more pronounced during the post-invasion period, especially after one week of the invasion. Finally, the Russia-Ukraine war predicts Bitcoin returns in both the short and long run.