Background and Motivation
Climate change poses systemic risks to global financial markets, yet its impact on cryptocurrencies remains understudied. Traditional finance research has extensively examined physical risks and transition risks in stocks and bonds, but cryptocurrencies’ unique characteristics demand specialised analysis. This study addresses a critical gap: how acute and chronic climate risks, coupled with technological and regulatory shifts, influence cryptocurrency volatility during crises. China Finance Review International (CFRI) is pleased to present the paper titled “Climate risks and cryptocurrency volatility: evidence from crypto market crisis”, which aligns with global calls to integrate climate considerations into financial stability frameworks, particularly as cryptocurrencies face increasing scrutiny over their environmental footprint.
Methodology and Scope
The study employed a fuzzy logic model to analyse non-linear relationships between climate indices (PRI/TRI) and cryptocurrency volatility. The fuzzy logic framework excels in handling uncertainty, making it ideal for capturing chaotic market responses to climate shocks.
Key Findings and Contributions
Why It Matters
Discover high-quality academic insights in finance from this article published in China Finance Review International. Click the DOI below to read the full-text original!
China Finance Review International
News article
Climate risks and cryptocurrency volatility: evidence from crypto market crisis
31-Mar-2025