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Horky, F., Mutascu, M., Fidrmuc, J. Pandemic Versus Financial Shocks: Comparison of Two Episodes on the Bitcoin Market. Applied Economics Quarterly, 67(2), 113-141.
Horky, Florian; Mutascu, Mihai and Fidrmuc, Jarko "Pandemic Versus Financial Shocks: Comparison of Two Episodes on the Bitcoin Market" Applied Economics Quarterly 67.2, 2021, 113-141.
Horky, Florian/Mutascu, Mihai/Fidrmuc, Jarko (2021): Pandemic Versus Financial Shocks: Comparison of Two Episodes on the Bitcoin Market, in: Applied Economics Quarterly, vol. 67, iss. 2, 113-141, [online]


Pandemic Versus Financial Shocks: Comparison of Two Episodes on the Bitcoin Market

Horky, Florian | Mutascu, Mihai | Fidrmuc, Jarko

Applied Economics Quarterly, Vol. 67 (2021), Iss. 2 : pp. 113–141

4 Citations (CrossRef)

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Author Details

Florian Horky, Zeppelin University Friedrichshafen, Am Seemooser Horn 20, 88045 Friedrichshafen, Germany.

Mihai Mutascu, corresponding author. Zeppelin University Friedrichshafen, Am Seemooser Horn 20, 88045 Friedrichshafen, Germany; Faculty of Economics and Business Administration West University of Timisoara, J. H. Pestalozzi St. 16, 300115, Timisoara, Romania; and LEO (Laboratoire d’Economie d’Orléans), UMR7322, Faculté de Droit d’Economie et de Gestion, University of Orléans, Rue de Blois – BP 26739, 45067, Orléans Cedex 2, France; e-mail:,

Jarko Fidrmuc, Zeppelin University Friedrichshafen, Am Seemooser Horn 20, 88045 Friedrichshafen, Germany; Mendel University in Brno, Faculty of Business and Economics, Zemědělská 1665, 613 00, Brno-sever-Černá Pole, Czech Republic; and Economic Institute in Bratislava, Slovak Academy of Sciences, Sancova No. 56, 811 05 Bratislava, Slovakia, e-mail:,

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With its rising popularity, the Bitcoin has also become increasingly independent from global financial markets. Recently, it has joined the class of alternative assets. We use the newly developed wavelet methodology to analyze daily data to compare the COVID-19 pandemic at the beginning of 2020 with the bear market episode at the end of 2018. In both cases, attention signals and a general panic are the main drivers of the Bitcoin fluctuations. We show that the Bitcoin’s dynamic is more complex than the dynamics of standard financial assets. The Bitcoin is, on the one hand, subject to pandemic shocks but also represents an important source of attention signals. On the other hand, because the Bitcoin additionally reacts on an emotional basis, it might react faster than other assets and thus creates a market signal itself. Moreover, we identify short cycles (of several days), which may possibly be related to demand factors, while long cycles (of several weeks) seem to mirror supply factors and might be related to Bitcoin mining in China. Finally, the analysis underlines the importance of continuous financial education and communication by the supervisory authorities about new, alternative financial assets.

Table of Contents

Section Title Page Action Price
Florian Horky / Mihai Mutascu / Jarko Fidrmuc: Pandemic Versus Financial Shocks: Comparison of Two Episodes on the Bitcoin Market 113
Abstract 113
1. Introduction 114
2. Literature Review 115
3. Methodology and Data 118
3.1 Methodology 118
3.2 Data 120
4. Results 113
5. Robustness Analysis 113
6. Conclusions 114
References 114
Appendix 114