All Rights Reserved
AccessEcon LLC 2006, 2008.
Powered by MinhViet JSC

Wen hsiang Chiu, Shih-wei Hung and Chiung-ju Liang
''The Mediation effect for Bitcoin, Evidence from China Market on the Period of Covid-19 Outbreaking''
( 2020, Vol. 40 No.3 )
The outbreak of Wuhan pneumonia in China in January 2020, we observed that sharp falls in Chinese stock markets were often followed by a brief drop in the price of Bitcoin followed by a notable increase. The fact that the outbreak of infectious disease in China had little impact on US markets and at least a portion of the funds flowed back to the US through Bitcoin transactions suggests that the price of Bitcoin is related to an outflow of Chinese funds to the US. Our analysis combining the computational aspects of cumulative prospect theory with the stochastic dominance method indicates that investors facing instability on Chinese markets use Bitcoin for hedge trading, perhaps as an intermediary in times of emergency.
Keywords: Bitcoin, Covid-19, Cumulative Prospect Theory, Stochastic Dominance, Capital Outflows
JEL: Z0 - Other Special Topics: General
C4 - Econometric and Statistical Methods: Special Topics
Manuscript Received : Jun 18 2020 Manuscript Accepted : Aug 08 2020

  This abstract has been downloaded 815 times                The Full PDF of this paper has been downloaded 153560 times