XRP reacts to regulatory news
The study creates an index that measures the reaction of Bitcoin’s price to different regulatory news. The same figures are taken for other cryptocurrencies as well. The study describes in more detail:This index captures how, on a given day, regulatory events would have moved the price of bitcoin. We then gauge the price responses of other cryptocurrencies to changes in this index, i.e. we essentially see whether the prices of these other cryptocurrencies reacted more or less strongly to regulatory news than bitcoin did, on average.
According to the study’s conclusions, BTC price has a high response, rather positive or negative, to regulatory news. In addition, the study finds that Litecoin, Bitcoin Cash and Ethereum have a similar reaction to Bitcoin on regulatory news:Bitcoin Cash and Litecoin – as well as the second largest cryptocurrency by valuation, Ethereum, react significantly to CRNI (cryptocurrency regulatory news index, columns 2–4). The impact is not significantly different from 1, however, ie they are as strongly affected by these news events as bitcoin is.
Author : Reynaldo