Abstract
This study examines the effects of the epidemic and the price bubble on the effectiveness of the cryptocurrency market. In this Research, We collect the daily closing price of 5 cryptocurrencies from https://coinmarketcap.com/. The data was taken from 01 September 2017 to 14 December 2021 with a total data or sample of 1231 daily data from each currency or a total of 6155 samples from a total of all tested currencies. The five cryptocurrencies are Litecoin (LTC), Cardano (ADA), Ethereum (ETH), Ripple (XRP), and Bitcoin (BTC). To measure market inefficiency we use magnitude market inefficiency (MIM) and the study by Le Tran and Leirvik (2019) is used to establish the adjusted magnitude of market inefficiency (AMIM). In this study AMIMt is calculated on a daily frequency by using the daily closing price as the basis for calculation.We found that the three periods of the cryptocurrency bubble in the cryptocurrency market occurred in late 2017, early 2018, and July 2020. The cryptocurrency financial bubble had a lesser impact than the announcement of a worldwide pandemic being declared for COVID-19 on March 11, 2020. It is very likely that a bubble will occur during July 2020 related to the declaration that COVID-19 is a pandemic of global scope.
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