TITLE:
Examining the Impact of COVID-19 on Stock Market Indices and Cryptocurrencies: A Comparative Study of Egypt and USA
AUTHORS:
Nancy Youssef
KEYWORDS:
COVID-19, Financial Markets, Egypt and USA, Cryptocurrencies
JOURNAL NAME:
Theoretical Economics Letters,
Vol.12 No.3,
June
29,
2022
ABSTRACT: In this paper, we investigate the link between the
well-known traditional finance and economic asset class and the digital
currencies. The present study is undertaken to investigate the impact of the
COVID-19 on the Financial Markets and the four major Cryptocurrencies from January
2020 to May 2021 in Egypt and USA. On the
process of investigating the impact of the COVID-19 on the financial
markets the study assumes the COVID-19 cumulative cases, Death cases, and the
Fatality ratio to be the independent variables, and the Stock returns for the
two indices (EGX30 and S&P 500), and the Returns for the four major
cryptocurrencies (Bitcoin, Ethereum, Litecoin, and Tether) to be the dependent
variables of the study. The study findings revealed that there is a negative
relationship between the COVID-19 cumulative cases, and daily S&P 500 stock
returns, and there is a negative relationship between COVID-19 cumulative
cases, fatality ratio, and daily EGX30 stock returns. There is a positive
relationship between COVID-19 world death cases and daily Bitcoin prices, daily
Ethereum prices, and daily Litecoin prices. There is a negative relationship
between COVID-19 world death cases and daily Tether prices because tether is
the only important stable coin on the crypto market with significant market
capitalization.