HERSUGONDO, Hersugondo (2026) " ARTIKEL Dr. HERSUGONDO, SE, MM: CAN A MEME COIN SERVE AS A HEDGE? A GARCH-BASED EMPIRICAL ASSESSMENT OF DOGECOIN VERSUS THE FIVE LARGEST CRYPTOCURRENCIES IN THE INDONESIAN CAPITAL MARKET ". Haser Journal, 26 (9). pp. 223-238.

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Abstract

This research aims to evaluate whether Dogecoin, a popular meme cryptocurrency, can
outperform the five largest cryptocurrencies based on market capitalization (Bitcoin, Ethereum,
Tether, Binance Coin, and Solana) as a hedging asset in the Indonesian capital market. Using
the GARCH model, this study analyzes daily closing prices from 2022 to 2024 for the
mentioned cryptocurrencies and the Composite Stock Price Index (JCI) to determine their
correlation and effectiveness as a hedge asset. The results show that although Bitcoin fails to
function as a hedge or diversification asset, Ethereum, Tether, and Binance Coin show
significant negative correlations with JCI, making them effective as hedge assets. In contrast,
Solana and Dogecoin show a significant positive correlation, indicating their role as
diversification assets rather than hedge assets. These findings provide new insights for
investors and investment managers in Indonesia, so that they can select strategic assets for
hedging and diversification purposes during market uncertainties such as the COVID-19
pandemic and the geopolitical conflict of the Russian-Ukrainian War. This research fills a gap
in the understanding of the potential of meme coins like Dogecoin compared to mainstream
cryptocurrencies as hedging assets in emerging markets like Indonesia.

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