The impact of regulatory, CBDC and crash events on cryptocurrencies and crypto-exposed equities

: an event study (2020-2024)

Abstract

The aim of this dissertation is to analyze market reactions to major regulatory announcements, Central Bank Digital Currency (CBDC) developments, and crash events in the cryptocurrency ecosystem between 2020 and 2024. Using event study methodology, it examines abnormal returns for five leading cryptocurrencies- Bitcoin, Ethereum, XRP, BNB, and Solana- as well as crypto-exposed equities such as Tesla, MicroStrategy, Nvidia, and Coinbase. A total of 23 events were tested, including global regulatory actions, pilot CBDC launches, and systemic collapses like the Terra and FTX crashes. Results show that regulatory actions and crash events often generate statistically significant abnormal returns, with crash events triggering stronger negative reactions. By contrast, CBDC announcements tend to elicit weaker or insignificant responses. Robustness checks confirm consistency across estimation windows. The findings contribute to growing literature on financial market responses to digital asset shocks and provide practical implications for policymakers, investors, and firms exposed to crypto markets.

Date of Award	25 Jun 2025
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Eva Schliephake (Supervisor)