Abstract:

The aim of this study is to investigate whether there is a bubble in crypto currency prices during the COVID-19 pandemic period. For this purpose, the data set covering the prices of Bitcoin (BTC), Ethereum (ETH) and Binance Coin (BNB), the 3 cryptocurrencies with the highest market value, covering the dates 10/03/2020-06/07/2021, was analyzed with the GSADF test. As a result of the analysis, it has been determined that there are balloons in the prices of all three cryptocurrencies examined. In addition, the fact that the periods of price bubbles detected in the cryptocurrencies analyzed were similar, provided strong evidence that there were price movements affecting the entire market in the periods when the bubbles were detected. The study has significant results for regulatory authorities and investors. Investors should pay attention to the price bubbles that may occur in the COVID-19 pandemic or financial crisis environments that may have similar effects on the markets and should consider this situation in their investment decisions. Finally, regulators of financial markets should take the necessary steps to protect investors from negative situations that may occur during the mentioned periods.

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