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Macro Regulation and Fluctuation of Cryptocurrency Market: Evidence from China

2022; Atlantis Press; Linguagem: Inglês

10.2991/aebmr.k.220307.412

2731-7854

Man Luo,

FinTech, Crowdfunding, Digital Finance

As a new developing financial market, cryptocurrency market is deeply concerned by investors and governments all over the world.However, due to its price instability, encryption and decentralization, the supervision of cryptocurrency has become a difficulty in the development of today's financial market.Different countries adopt different regulatory policies for cryptocurrency, and the regulatory attitude of various countries also affects the development of cryptocurrency market to a certain extent.Among them, China has a decisive influence in the cryptocurrency market with its huge number of cryptocurrency investors.In order to explore whether China's macro regulatory policies will have a significant impact on the cryptocurrency market, this paper studies the impact of China's macro regulatory policies on the volatility of the cryptocurrency market based on ARMA-GRACH model.Eventually, the results show that China's macro regulatory policies have a significant impact on the price fluctuation of cryptocurrency in the short term, but this impact disappears in the long term.Governments are supposed to formulate relevant policies carefully to prevent systemic financial risks, and investors also need to take a correct attitude towards the fluctuation of cryptocurrency.