Graduation Year


Date of Submission


Document Type

Open Access Senior Thesis

Degree Name

Bachelor of Arts



Reader 1

Andrew Finley

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This paper examines if there is an inverse correlation between Bitcoin’s most volatile price swings and national commercial banks and security brokers, exchanges and service companies performance. Company performance in the dataset is measured by Cumulative Abnormal Returns during 2021 within a two-day period where Bitcoin has had the most significant uptick and downtick events. Using a market-adjusted model for my regression, it is concluded that Bitcoin’s largest uptick event did indeed have an inversely negative effect on traditional banks and trading securities companies, as the Cumulative Abnormal Returns were negative for my 107 observations and the event was statistically significant. Additionally it concluded that Bitcoin’s largest downtick event had little to zero correlation and impact on the Cumulative Abnormal Returns for my observations and was not statistically significant. However this led me to speculate further that in times of economic turmoil specifically concerning the largest dip for Bitcoin in 2021 that banks react quickly to negative price movements in Bitcoin which allows them to maintain a stable foundation. Finally the paper concludes that for future event analysis of its own significance it is important to capture all elements desired of bank information, as leaving out certain information can lead to omitted variable bias.