OPPORTUNITIES TO INVEST IN CRYPTOCURRENCIES DURING THE ACTIVE PHASE OF THE COVID-19 PANDEMIC IN 2020-2021 AND THE CONVENTIONAL RUSSIAN-UKRAINIAN WAR OF 2022

Abstract

Since the rise of the first cryptocurrency in 2008 until 2022, we can observe significant price volatility of cryptocurrency coins, periodic decline in prices for cryptocurrency coins and their growth, changes in the volume of cryptocurrency coin trading. Investors perceive cryptocurrency as an alternative (hedging) investment, a means of circulation and a measure of value. They increasingly use it in global socio-economic and military-political crises. Studying the price dynamics of cryptocurrencies during the active phase of the Covid-19 pandemic in 2020-2021 (the previous pandemic was a hundred years ago – the so-called "Spanish flu") and the conventional Russian-Ukrainian war of 2022 (and a similar scale of conflict after World War II 77 years), we will try to conduct an economic analysis to examine how these crisis factors affected the dynamics of prices for major cryptocurrencies – Ether and Bitcoin.
Highlighting previously unresolved parts of the overall problem. The influence of various global factors on the price of cryptocurrencies has been insufficiently studied due to the short historical period of cryptocurrencies existence. We will try to identify the dependence of cryptocurrencies' values dynamics on the presence of global positive or negative factors (pandemics, wars, etc.).
The purpose and objectives of the study. The main objectives of the article are to prove that the presence of global positive or negative factors (pandemics, wars, etc.) has a significant impact on the structure of investment, in general, and the price dynamics of cryptocurrency units in particular.
Methods. In the research process, in particular, the following methods were used: analysis – to reveal the object and subject of research; abstract-logical (theoretical generalizations and formulations of conclusions concerning the impact of the Covid-19 pandemic in 2020-2021 and the conventional Russian-Ukrainian war in 2022 on the value of the cryptocurrency Bitcoin).
Results. The significant impact of the Covid-19 pandemic in 2020-2021 and the conventional Russian-Ukrainian war in 2022 on various components of the financial market has been revealed. It was found that extreme socio-economic events provoke a fall in the stock market, do not provoke significant changes in the gold market and stimulate the major cryptocurrencies value growth. Bitcoin and Ether price dynamics have been shown to be highly correlated and are more suitable as short-term safe investment havens for pandemic or conventional war events than gold for economic operators who want to save and increase their savings.
Conclusions. Due to the significant increase in the price of Bitcoin and Ether cryptocurrencies during the peak periods of the Covid-19 pandemic in 2020-2021 and the conventional Russian-Ukrainian war in 2022, cryptocurrencies are an effective and appropriate tool for investing and saving financial resources in the short term.