RATE Group | Regulations Drive Down Bitcoin Prices, Says Research
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Regulations Drive Down Bitcoin Prices, Says Research

08 Jan Regulations Drive Down Bitcoin Prices, Says Research

Posted at 21:22h in Cryptocurrency News by

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The introduction of regulations tend to drive Bitcoin and cryptocurrency prices down, says new research.

News of crypto regulations have a negative impact on the price of Bitcoin, suggests a 2020 paper published in the journal Research in International Business and Finance. The study looks at five categories of news: anti-money laundering, exchange controls, issuance (securities) regulations, and state-backed cryptocurrencies ⁠— all of which statistically drive prices down.

The study analyzed 120 regulation-related news events reported by traditional media outlets like Bloomberg, Reuters, BBC, and the Financial Times between 2017 and 2018 between those five categories.

Researchers then estimated the direct effect of each regulatory event on the price of 300 cryptocurrencies ⁠— consisting mainly of Bitcoin by merit of market capitalization ⁠— and found that four out of five regulatory events have a significant impact on prices, with AML and issuance regulation being the…

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