The COVID-19 and Dynamics in Cryptocurrencies: An empirical evidence

Abstract

The coronavirus pandemic occurred in 2019 and caused an impact on cryptocurrencies. This paper focuses on the relation between the return of cryptocurrencies and the new daily confirmed cases of COVID-19 worldwide, taking Bitcoin, Ethereum, and Tether as three examples. It is shown that the new daily cases have a significant influence on Bitcoin and Ethereum. And the short-term impact of new global confirmed cases on Bitcoin is positive, then remains volatile and eventually disappears. The different phenomena show that different cryptocurrencies have reacted differently to the pandemic impact.