Bitcoin prices at regular intervals following regulatory events affecting digital asset taxation, accounting and payments, as well as decisions on the legality of service providers and the digital assets themselves. The research looked at the Americas, Europe, China and Asia except for China, and confined itself to the period between September 30, 2011, and March 31, 2022.
Data relative to “average Bitcoin return” showed similar trends, although less sharply. In the Americas, Bitcoin prices rose 160.4% in absolute terms 365 days after regulatory events, and 32.3% in relative terms. In Europe, those figures were 180.1% and 52.0%, respectively. In Asia except for China, the figures were 116.9% and -11.2%, however.
on mining and trading of digital assets. Therefore, the negative impact of regulation they found on Bitcoin prices in China was also evidence of the effect of regulation.The authors conclude, “The results of the study are clear. Both on an absolute basis as well as [a] relative basis, increasing regulatory clarity is advantageous for the price of Bitcoin.