High-frequency connectedness between Bitcoin and other top-traded crypto assets during the COVID-19 crisis

The Cryptocurrency Market in Transition before and after COVID-19: An Opportunity for Investors?

“…Thus, the number of groups decreases while the size of each group increases. This might be a consequence of an increase in the connectedness of cryptocurrencies during the pandemic, as shown in many research papers [ 11 , 27 , 45 ]. In the recovery time, however, the network started to divide into smaller parts again, perhaps because the cryptocurrency market overcame the most connected period and started to go back to its normal behavior.…”

“…This is in line with different studies that use different datasets and time periods [ 125 , 127 , 128 ]. More importantly, the way investors show herding behavior is that they tended to invest in the major and most-tradable cryptocurrencies [ 27 ]. This can be explained by the fact that high-ranking cryptocurrencies are more mature so they are more stable than the rest and are more likely to retain value under the uncertainty of the global financial market, causing a bias from investors [ 129 ].…”

“…Different existing approaches to study the correlations in the stock market have been applied to digital coins. Some common conclusions from existing articles are that the cryptocurrency network changes over time but Ethereum tends to act as a central node in the whole network, i.e., it is a densely connected node [ 5 , 27 , 28 ]. A few works remedy the problem of dataset shortages that have been concerned in the traditional markets, i.e ones tended to use low-frequency data to implement their studies such as daily or weekly.…”

Volatility and Return Connectedness of Cryptocurrency, Gold, and Uncertainty: Evidence from the Cryptocurrency Uncertainty Indices

“…Bitcoin still has a leading role in the cryptocurrency market, with a market cap of around $0.92T in December 2021. However, the dominance of Bitcoin has been steadily decreasing with the rise of Altcoins (Chowdhury et al, 2021;Dastgir et al, 2019;Elsayed et al, 2020;Fang et al, 2020aFang et al, , 2020bJi et al, 2019;Liu et al, 2020;Shi et al, 2020;Yi et al, 2018), and specifically Ethereum-based tokens, such as non-fungible tokens (NFTs) and decentralized finance (DeFi) assets (Katsiampa et al, 2021;Yousaf and Yarovaya, 2021). Also, periods of significant volatility in the cryptocurrency markets during the key events in the cryptocurrency area, e.g., DeFi boom and attack on cryptocurrency exchanges, increased attention and uncertainty on cryptocurrency markets .…”

Dependency structures in cryptocurrency market from high to low frequency

“…They use the MST method in order to group assets into hierarchical clusters and they highlight the potential existence of topological properties of the cryptocurrency market. This work is extended by [38]. Here, authors adopt the MST and the PMFG to study the change in cryptocurrency market's network structure before and after the COVID-19 outbreak.…”