2024/12/10 by Hakan Yilmazkuday · 1 voice
Economics, Econometrics and Finance · Computer Science · #Market Dynamics and Volatility #Blockchain Technology Applications and Security #Financial Risk and Volatility Modeling
paper · pdf · doi:10.1002/rfe.1223
openalex publication_date 2024/12/10 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/19
Abstract This study examines how global geopolitical risks , threats , and acts impact the daily returns of 10 major cryptocurrencies (BTC, ETH, USDT, XRP, BNB, USDC, BCH, DOGE, LTC, and ADA). The statistically significant results that are robust to the consideration of alternative model specifications and control variables suggest that there is strong evidence for (i) ETH, XRP, BNB and BCH responding negatively to the shocks of geopolitical risks , (ii) BTC, ETH, BNB, BCH, LTC and ADA responding negatively to the shocks of geopolitical threats , and (iii) all 10 cryptocurrencies not responding to the shocks of geopolitical acts . As these 10 cryptocurrencies do not respond positively to any of the three shocks in a robust and statistically significant way either, it is implied that none of them offer a reliable hedge against geopolitical risks.