Study of the Impact of Chinese Policies and Regulations on Bitcoin

Abstract

Bitcoin is an emerging digital virtual currency with both decentralization, high degree of freedom and high bookkeeping efficiency, and the transaction scale of its market has developed rapidly in recent years.This paper selects the closing price of Bitcoin from May 2015 to August 2022, divides the data into two groups to establish a GARCH model based on the date of promulgation of the Bitcoin ban, and determines the impact of the regulation on the fluctuation of Bitcoin transactions by comparing the volatility characteristics of the two sets of models.This study is conducive to determining the direction and size of the impact of some policy changes on bitcoin fluctuations, and has a reference effect on the determination and adjustment of bitcoin-related policies and regulations.