Yousaf, I., Riaz, Y. and Goodell, J. W. (2023) What do responses of financial markets to the collapse of FTX say about investor interest in cryptocurrencies? Event-study evidence. Finance Research Letters. 53 1544-6123.
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Abstract:
Studying the impact of the collapse of FTX on financial markets, we identify that, while this event was important to cryptocurrency markets, it was mostly irrelevant to traditional assets. Bitcoin, ethereum, and binance responded significantly negatively, while equity, energy, and currency markets were largely unmoved. Gold and silver having significant positive returns suggests cryptocurrency investors fled to purported safe havens. Results are consistent with traditional investors already having evolved to indifference to cryptocurrencies during the bear market prior to the FTX collapse. Results also suggest that cryptocurrencies are likely not as important a concern to financial stability as previously regarded.
Uncontrolled Keywords:
FTX, Cryptocurrencies, Financial market risk, Event studies
Creators:
Yousaf, I., Riaz, Y. and Goodell, J. W.
Faculties, Divisions and Institutes:
Date:
14 March 2023
Date Type:
Publication
Journal or Publication Title:
Finance Research Letters
Volume:
53
Number of Pages:
322847
Language:
English
ISSN:
1544-6123
Status:
Published / Disseminated
Refereed:
Yes
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