The role of Bitcoin as hedge, safe haven or diversifier for USA stock markets: evidence from the DCCGARCH approach

الملخص EN

The aim of this paper is to examine the hedging, safe haven and diversification abilities of Bitcoin in the stock, energy and currency markets.

To do so, we collected daily data from 03 January 2011 to 18 October 2019.

The results suggest that Bitcoin is considered an effective diversification tool for the stock and energy markets.

However, it is a strong hedge for the currency market.

In addition, they reported that Bitcoin represents a safe haven for the stock and energy markets.

American investors are advised not to include Bitcoin in their portfolios massively as a safe haven, because this leads to increased volatility.