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The cryptocurrency uncertainty index

240 Citations2021
Brian M. Lucey, Samuel A. Vigne, Larisa Yarovaya

It is suggested that this index captures uncertainty beyond Bitcoin, and can be used for academic, policy, and practice-driven research.

Abstract

We develop and make available a new Cryptocurrency Uncertainty Index (UCRY) based on news coverage. Our UCRY Index captures two types of the uncertainty: cryptocurrency price uncertainty (UCRY Price) and cryptocurrency policy uncertainty (UCRY Policy). We show that the constructed index has distinct movements around major events in cryptocurrency space. We suggest that this index captures uncertainty beyond Bitcoin, and can be used for academic, policy, and practice-driven research.