| Abstract: |
| In recent years, global geopolitical risk (GPR) events have had profound effects on economies and financial markets. This paper systematically ana- lyzes the hedging characteristics of traditional safe-haven assets (gold, USD, oil) compared to cryptocurrencies (Bitcoin, Ethereum, Litecoin) under dif- ferent levels of GPR. Utilizing quantile regression and QQ plots, the study explores the dynamic nonlinear impacts of GPR on various assets and em- pirically analyzes the influence of key geopolitical events on asset markets. The findings reveal that cryptocurrencies have relatively weaker hedging functions in the context of geopolitical risks, while traditional safe-haven assets like gold, USD, and oil demonstrate more stable hedging character- istics during periods of uncertainty. Notably, the correlation between GPR and asset prices is more pronounced under extreme market conditions. This research offers new asset allocation recommendations for investors and en- hances the understanding of the hedging properties of cryptocurrencies. |
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