Cryptocurrency Returns: Empirical Evidence in COVID 19 Pandemic

Abstract

Cryptocurrencies are presently one of the most popular assets for investor speculation, especially during the COVID 19 pandemic. The aim of this study is to analyze the returns of cryptocurrencies. during the COVID 19 pandemic and to find out more about the economic and other variables affecting the returns of cryptocurrencies. These cryptocurrencies of this study include Bitcoin (BTC), Binance Coin (BNB), Ripple (XRP), Ethereum (ETH), and Tether (USDT). According to the study results, BNB and ETH were the two cryptocurrencies with the highest returns. The Dow Jones Industrial Index is determined using regression analysis and is positively correlated with all currencies. Oil prices and sentiment toward cryptocurrency are the next two most important factors, which had a minor impact on the movement of cryptocurrency returns. However, the overall factors used in the study had little impact on cryptocurrency returns.