War-driven attention and cryptocurrency returns: The case of the Russia–Ukraine war

Abstract

The paper investigates how attention to the Russia-Ukraine war affects cryptocurrency returns by creating a Google search volume index (GSVI) using Google trends keywords. It finds that crypto returns react positively to attention to war and negatively to the volatility index (VIX), demonstrating that investor fear during times of crisis may increase interest in cryptocurrencies. The research provides specific insights into crypto markets that can aid portfolio managers and regulators. It also adds to the limited studies on the impact of war on cryptocurrency returns.