Date of Award

12-2021

Degree Type

Report

Degree Name

Master of Science (MS)

Department

Economics and Finance

Committee Chair(s)

Tyler Brough (Committee Chair)

Committee

Tyler Brough

Committee

Todd Griffith

Committee

Benjamin Blau

Abstract

In this paper, I examine the effect of the May 18th, 2021 Chinese ban of cryptocurrency transactions on the overall volatility of the cryptocurrency market. To do this, I analyze, in both univariate and multivariate settings, range-based volatility in various event windows surrounding the event. I find clear economic and statistical change in volatility in the five days after the ban. In the ten-day period after the ban, there is a moderate economic change in volatility. In the forty-day period after the ban, there is little economic change in volatility. I conclude that the Chinese ban had a clear short-term impact on the volatility of the cryptocurrency marketplace, but the effects wore off shortly thereafter.

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