When Cryptos Face Storms: How They Respond

Ever thought about what happens to cryptocurrencies when the market gets tough? Researchers used complex models like Student-t, Frank, and Clayton, along with Copula methods, to find the answers. They cleaned the data with EGARCH for return rates and GARCH for trading volumes. So, what did they learn? Bitcoin, Ripple, and Litecoin all saw drops in both return rates and trading volumes when the market turned rocky.

Why did this happen? People usually become cautious. But here's what's interesting: Ethereum didn't behave the same way. Its extreme returns and trading volumes remained quite stable. This shows how trading behavior changes when the market is full of doubts. It's like seeing how people act during a storm at sea. Some cryptocurrencies are like tiny boats, while others are more like sturdy ships.

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