Author(s) :

Krishiv Goswami.

Volume/Issue :

Abstract :

As the cryptocurrency market has grown rapidly, it is imperative to identify the factors that drive cryptocurrency value. This paper analyzes the association between Donald Trump’s announcements on the values of four major cryptocurrencies: BTC (Bitcoin), ETH (Ethereum), ADA (Cardano), and XRP (Ripple). An event study methodology was used to analyze the impact of seventeen statements made by Trump from 2019 to 2025 on the value of cryptocurrencies, compared to a counterfactual where the statements were not made. It was found that negative announcements were associated with a significant decline in the values of the cryptocurrencies. However, no impact was found from neutral announcements. It was also found that the impact of positive announcements was difficult to interpret because of a pre-existing trend of falling values during the run-up period, suggesting that positive statements tended to occur during periods of falling prices. These findings are consistent with the notion of semi-strong efficiency of financial markets and also point to the potential of a politician to influence the values of cryptocurrencies by means of announcements.