Impact on the Volatility of the Bitcoin Price with the Implementation of Macro-Regulation

Abstract

After year two thousand, with the booming of internet networks, virtual currency has appeared into the public's view. In the midst of all (including 8861 numbers of virtual currency, calculate by Coinmarketcap), bitcoin has become the most represented currency for us to discuss. This paper returns the closed adjusted price calculates rates. ARMA models are used to test whether the time series is stationary or not. Dummy variables are set according to the time by specific policies are implemented. According to the GARCH model we used, the implementation of the policy does lead to a sharp decline in the price of bitcoin. Accordingly, in the development process of bitcoin, supervision does give a positive effect in maintaining the price to be balanced and a positive control on malicious speculation to monopolize the bitcoin market and blind purchasing.