Impat of the S&P500 index and Covid-19 daily cases on Bitcoin in the United States.

The role of Bitcoin in the world economy keeps growing. In this study, a quantitative time series approach is utilized to examine the relationship between Bitcoin, the most popular cryptocurrency, the S&p500 index, and COVID-19 cases in the United States. The research questions and hypotheses are designed to examine the relationships between all these variables. The secondary data was obtained from August 1, 2019, to March 31, 2020, from official websites. COVID-19 data was obtained from the New York Times website. Data for Bitcoin and the S&p500 index was obtained from the Investing.com website. The analysis started by summarizing the data in order to see the mean values, standard deviation, skewness, and kurtosis, all of which help us visualize the distribution of the data values. The Augmented Dickey-Fuller and Phillips and Perron tests were then used to determine whether the variables were stationary or not. Since the variables are not stationary at level but at difference, the vector error correction model (VECM) was employed to check the cointegration of the variables in the short and long runs. The results showed that the rank of cointegration is equal to 1, meaning that the variables have one relationship linking them. Also, Bitcoin and the S&p500 index are reversely correlated. However, Bitcoin and COVID-19 cases are positively correlated. Investors and market participants may be implicated by the findings of the study.