The recent 50% drop in the price of the flagship cryptocurrency Bitcoin reinforces the persistent anxiety among cryptocurrency investors. Can alternative assets hedge Bitcoin risk? This study investigates the ability of equities, commodities, bonds, currencies, and VIX futures to hedge Bitcoin....

Using the geopolitical threats (GPT) index of Caldara and Iacoviello (2022), we show, in this paper, that the U.S. equity market and a few individual sectors produce significantly positive returns during high geopolitical threats, even with the presence of standard controls, while other major...

In this paper, we demonstrate that the U.S. equity market and a few specific sectors produce significantly positive returns during high geopolitical threats, even with the presence of standard controls, whereas other major markets around the world fail to exhibit such results. We use the...