Do International Sanctions affect Bitcoin Returns?
Faculty Mentor(s) Name(s)
Chris Clark, Brooke Conaway
Abstract
Following the Russian invasion of Ukraine and the subsequent economic sanctions implemented by the West, major media sources across the world began reporting on the use of Bitcoin by Russian billionaires and oligarchs attempting to dodge sanctions. Using daily price data, sourced from the major crypto exchanges, I estimate the effect of sanctions on the short-term price returns. Previous papers have found no impact from sanctions, but measured against volume, a much less reliable metric. My preliminary results show there is no effect of sanctions on the price of Bitcoin, likely because the Bitcoin market is still too small and illiquid to facilitate trades of the necessary size.
Start Date
27-3-2024 2:40 PM
End Date
27-3-2024 2:48 PM
Location
Atkinson 107
Do International Sanctions affect Bitcoin Returns?
Atkinson 107
Following the Russian invasion of Ukraine and the subsequent economic sanctions implemented by the West, major media sources across the world began reporting on the use of Bitcoin by Russian billionaires and oligarchs attempting to dodge sanctions. Using daily price data, sourced from the major crypto exchanges, I estimate the effect of sanctions on the short-term price returns. Previous papers have found no impact from sanctions, but measured against volume, a much less reliable metric. My preliminary results show there is no effect of sanctions on the price of Bitcoin, likely because the Bitcoin market is still too small and illiquid to facilitate trades of the necessary size.