Are COVID-19-Related Economic Supports One of the Drivers of Surge in Bitcoin Market? Evidence from Linear and Non-Linear Causality Tests

The aim of this study was to investigate the causal relations between COVID-19 economic supports and Bitcoin markets. For purpose, we first determined degree integration variables by implementing Fourier Augmented Dickey–Fuller unit root tests. Then, carried out both linear (Bootstrap Toda–Yamamoto) non-linear (Fractional Frequency Flexible form causality tests consider nonlinearities in variables, determine if effects multiple structural breaks were temporary or permanent, evaluate unidirectional running from COVID-19-related price, volatility, trading volume Bitcoin. Our included 158 countries, used daily data over period 1 January 2020 10 March 2022. findings provide evidence causalities most countries sample. application helped us obtain more about these causalities. Some found be some them temporary. results indicate that can considered a major driver surge market during pandemic.