Impact of COVID19 on the Islamic cryptocurrencies

Abstract

Cryptocurrency is a new form of digital asset based on a network distributed across a large number of computers. The main objective of this work is to investigate the impact of COVID-19 on the Islamic cryptocurrency markets returns. In this methodology, we identify a group of Islamic cryptocurrencies consisting of the X8X, Hellogold and OneGram. This paper uses the Newey-West standard errors regression to estimate the effect of the COVID-19 pandemic on the Islamic cryptocurrencies returns. The empirical results show that COVID-19 total deaths have a negative effect on respectively the X8X cryptocurrency, HelloGold, and OneGram cryptocurrencies. In the same way, the COVID-19 total confirmed cases growth has a negative effect on respectively the X8X cryptocurrency, and OneGram cryptocurrencies. This study contributes to the literature by identifying the impact of COVID-19 on the Islamic cryptocurrency markets.