Can altcoins act as hedges or safe-havens for Bitcoin?
2022; Elsevier BV; Volume: 52; Linguagem: Inglês
10.1016/j.frl.2022.103360
ISSN1544-6123
AutoresYi Li, Brian M. Lucey, Andrew Urquhart,
Tópico(s)Crime, Illicit Activities, and Governance
ResumoBitcoin remains the most popular cryptocurrency and has attracted significant research attention, especially in the hedging and safe-haven literature. As many investors in bitcoin are concentrated heavily in cryptocurrencies as opposed to other assets, a question arises whether alternative cryptocurrencies (altcoins) can used as safe-havens and hedges against Bitcoin? We find that only meme coins offer hedging benefits but a wider range – Defi, meme coins, smart contracts, metaverse and privacy cryptocurrencies – can all act as safe-havens against bitcoin. We further show that their ability to act as hedges and safe-havens varies depending on whether the market is in a bubble or non-bubble period.
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