The Study On The Financial Risk Of Digital Currency From The Perspective Of Price Fluctuation

In the short ten years of the development of digital currency,its technical characteristics not only provide more favorable technical convenience for social development and benefit the public,but also bring new difficulties and challenges for the investigation of many adverse events.This paper analyzes the relationship between digital currency development,supply and demand,characteristics,risks,major events,price and supervision.From the perspective of the development of digital currency,the emergence of digital currency is inevitable,which has its theoretical basis and is necessary from the perspective of practice.From the perspective of supply and demand,the existence of digital currency is valuable and meaningful.Most of the risks arising from the characteristics of digital currencies involve regulatory areas.Therefore,this paper demonstrates the relationship between risk,price and supervision.Given that the most intuitive measure of risk is the price of bitcoin,and major events have a significant impact on the price of bitcoin: when good events occur,the price usually rises;when bad events occur,there will be obvious price declines,and then the price will still rebound and rise.In view of this,this paper adopts the event research method to conduct empirical modeling and analysis of three recent major events.Since digital currency supervision is a global challenge,China has adopted stringent regulatory measures.Based on the empirical conclusions in this paper,relevant policy recommendations are proposed.Across the globe,countries are striking a balance between protecting the interests of their holders,financial innovation and stability.China should make timely and appropriate reference to the management experience of other countries in accordance with its national conditions,improve itself and form a digital currency supervision system with Chinese characteristics.