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the impact of the unprecedented coronavirus pandemic on global economic growth fell by 3.5% in 2020, afterward, the Russia-Ukraine conflict came up on February 24, 2022. As shown in Figure 1b, European Brent crude oil price was trading at ＄90.24 per barrel on 1 February 2022 just before the Russia-Ukraine war. As of 8 March 2022, the peak price was selling at ＄133.18 per barrel, about ＄43 higher than the pre-war level. The ongoing geopolitical risk leading to crude prices has raised global oil marketing to gradually increase fuel prices to minimize their possible losses. Commodities are exposed to ongoing inflationary pressure. The global stocks and commodity market turmoil linked to the Russia-Ukraine war have more exposed to the regulatory risks of the low-carbon energy transitions performed better and to mitigate carbon dioxide (CO2) emissions [10,11]. However, in response to the COVID-19 pandemic and geopolitical risk, hedging derivatives on cryptocurrency and carbon emission markets have been underexplored. In this study, we aim to fill this research gap, and the portfolio hedges including crypto and gold might be considered against the energy crisis attributing to market turbulence. In post COVID-19 pandemic era, Bitcoin and Gold are regarded as popular safe havens when geopolitical risk arises. These cryptocurrencies and various mainstream financial assets (e.g., oil, gold and futures) are better options to recognize the capability/role of Bitcoin: A hedging instrument, a diversifier or a safe haven e.g., [5,12,13,14].
More recently, there is extensive empirical evidence that cryptocurrency, energy and major commodity markets are closely connected. We are motivated by the growing number of studies investigating the interconnectedness between cryptocurrencies and various futures classes. Crucially, an in-depth analysis of the interrelatedness between Bitcoin and carbon emission or oil and gold futures markets. It can play a significant role in conducting adequate investment strategies that enable market participants to effectively manage their portfolios. This study could be crucial for investors applying Bitcoin to conduct safe haven, portfolio diversification and hedge against inflation or trading strategies during market crash periods. Theoretically, knowledge regarding economic uncertainty or inflation risk will allow market actors to obtain excess returns by allocating hedging assets [15,16]. Thus, the price of hedging assets may be regarded as a leading indicator of inflation risk, and act as an instrument to hedge against future risk or inflation [5]. The recent and rapidly growing of these hedging instruments include Bitcoin futures and options, as well as carbon emission, oil and gold futures prices that are related to Bitcoin futures prices.
