Co-movement of COVID-19 and Bitcoin: Evidence from wavelet coherence analysis

We apply wavelet methods to daily data of COVID-19 world deaths and daily Bitcoin prices from 31th December 2019 to 29th April 2020. We find, especially for the period post April 5, that levels of COVID-19 caused a rise in Bitcoin prices. We contribute to the fast-growing body of work on the financial impacts of COVID-19, as well as to ongoing consideration of whether Bitcoin is a safe haven investment. Our results should be of great interest to both scholars and policy makers, as well as investment professionals interested in the financial implications of both COVID-19 and cryptocurrencies.

Automated summary

Using wavelet methods, the study found a correlation between COVID-19 levels and Bitcoin prices, particularly post April 5. The results contribute to understanding the financial impacts of COVID-19 and evaluating Bitcoin as a safe haven investment.