Extreme events and Bitcoin returns: evidence from terrorist attacks and natural disasters in Western countries

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School of Business | Bachelor's thesis
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Date

2017

Major/Subject

Mcode

Degree programme

Rahoitus

Language

en

Pages

21

Series

Abstract

This study provides new evidence on the effects of terrorist attacks and natural disasters on the price of Bitcoin. I find that terrorist attacks affect positively the price of Bitcoin during event-days. This effect is most strong during periods of high general interest in Bitcoin. However, natural disasters seem to have no impact on the price of Bitcoin. I also find that macroeconomic variables have no significant impact on Bitcoin price in the short run. This finding is consistent with previous literature.

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Thesis advisor

Shin, Sean

Keywords

terrorism, Bitcoin, disaster, return, trend, asset, event-day

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