This study investigates the impact of market liquidity on Bitcoin's diversification performance against global equity risk, using gold as a comparative benchmark. By using hourly data to construct the liquidity measures, our findings suggest that an increase in Bitcoin's market liquidity significantly enhances Bitcoin's effectiveness as a diversifier relative to gold.
No takes yet. Share an insight, caveat, or question.
Lin et al. (2024) studied this question.
Synapse has enriched 5 closely related papers on similar clinical questions. Consider them for comparative context: