Abstract
Bitcoin 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.
| Original language | English |
|---|---|
| Article number | 103360 |
| Number of pages | 6 |
| Journal | Finance Research Letters |
| Volume | 52 |
| Early online date | 24 Sept 2022 |
| DOIs | |
| Publication status | Published - Mar 2023 |