The Impact of External Factor on Cryptocurrency: Explicit and Implicit Policy

Abstract

In recent years, the view of economists and issuers of cryptocurrencies has changed a lot, from the original price of cryptocurrencies is unpredictable, to the view that cryptocurrencies are affected by several key factors. Confidence is one of the key factors, and it is thought to be controllable. However, many economists and cryptocurrency issuers have acknowledged that the support for confidence in the cryptocurrency market is complex and volatile. The goal of this paper is to propose ways to stabilize confidence in cryptocurrencies based on these studies. Explicit and implicit policies are one of the important factors affecting cryptocurrencies. The purpose of this article is to illustrate the close connection between cryptocurrencies and information, and to analyze how explicit and implicit policies affect cryptocurrency information and markets. The impact of explicit and implicit policies on the price of cryptocurrencies is unpredictable, but it still has regularity in the impact on the price of cryptocurrencies. This article analyzes several notable cryptocurrency explicit and implicit policy events to illustrate the differences and characteristics between the two types of policies. The influence of explicit policy is not positively correlated with its propaganda intensity in the short term but will be maintained and stable in the long term. Stealth policies tend to show dramatic changes in a short period of time and are highly correlated with popularity. While hidden policies can cause sudden fluctuations, issuers of cryptocurrencies should pay more attention to the effects of explicit policies because they are more durable.