AUTHOR=Chen Tiejun , Lau Chi Keung Marco , Cheema Sadaf , Koo Chun Kwong TITLE=Economic Policy Uncertainty in China and Bitcoin Returns: Evidence From the COVID-19 Period JOURNAL=Frontiers in Public Health VOLUME=9 YEAR=2021 URL=https://www.frontiersin.org/journals/public-health/articles/10.3389/fpubh.2021.651051 DOI=10.3389/fpubh.2021.651051 ISSN=2296-2565 ABSTRACT=
This paper analyses the effects of the Chinese Economic Policy Uncertainty (CEPU) index on the daily returns of Bitcoin for the period from December 31, 2019 to May 20, 2020. Utilizing the Ordinary Least Squares (OLS) and the Generalized Quantile Regression (GQR) estimation techniques, the paper illustrates that the current CEPU has a positive impact on the returns of Bitcoin. However, the positive impact is statistically significant only at the higher quantiles of the current CEPU. It is concluded that Bitcoin can be used in hedging against policy uncertainties in China since significant rises in uncertainty leads to a higher return in Bitcoin.