binance-banner.jpg

Are Bitcoin Futures, Tether Better ‘Safe-Havens’ Than Bitcoin?


Are Bitcoin Futures, Tether Better ‘Safe-Havens’ Than Bitcoin?

COVID-19’s impact on the financial industry has been strong and noticeable. In fact, there are reasons to believe that COVID-19 will have a dynamic and significant impact on the world’s economic landscape, both at present and in the future. Analysts across the globe are now evaluating how COVID-19 will necessitate a large-scale re-examination of research into financial market contagion, a realization that has now given rise to an imminent discussion between cryptocurrencies and the traditional equity market. A recent study titled, “Diversifying with cryptocurrencies during COVID-19,” used various econometric models and calculations, including wavelet coherence, copula principal component analysis, and neural network analyses to understand the impact of COVID-19 on six digital assets, including Bitcoin Futures, alongside 14 equities and the Volatility Index (VIX). After carrying out the process highlighted above, the study came to the conclusion that the co-movements of the six digital assets (Bitcoin, Ethereum, Litecoin, XRP, Tether, and EOS) and equity indices got ‘progressively larger’ as the impact of the pandemic gathered pace. Read More...