Bitcoin prices and rupee-dollar exchange rates during COVID-19. (11th June 2021)

• Record Type: Journal Article
• Authors: Naresh, G.; Ananda, S.
• Is Part Of: International journal of electronic finance. Volume 10:Number 3(2021)
• Page Start: 180
• Page End: 190
• Publication Date: 2021-06-11
• Subjects: bitcoin -- cryptocurrency -- fiat currency -- crypto assets -- exchange rate -- stock exchange -- investment -- portfolio -- COVID-19 -- causality -- bitcoin prices -- rupee-dollar exchange rate -- Granger causality; Financial services industry -- Computer networks -- Periodicals; Electronic commerce -- Periodicals; 332.178
• Languages: English
• ISSNs: 1746-0069

Abstract

Bitcoin is the primary cryptocurrency in the world that can be stored and traded through the internet. Digital contracts and cryptocurrencies created on blockchains have now been used in exchanging instruments on the networks and are available online readily. This paper's main objective is to investigate the causal relationship between bitcoin prices and rupee-US dollar exchange during COVID-19. The study used the Granger causality model to study the price behaviour of bitcoin and the rupee-dollar exchange rate. The study found an unidirectional Granger causality existed, where the rupee-US dollar exchange rate affected the bitcoin price in the Indian market during COVID-19. The bitcoins are widely considered as an investment asset in Indian markets, and the rupee-dollar exchange rate has a significant impact on the bitcoin prices.