Loaded for bear: Bitcoin private wallets, exchange reserves and prices

【Author】 Hoang, Lai T.; Baur, Dirk G.

【Source】JOURNAL OF BANKING & FINANCE

【影响因子】3.539

【Abstract】This study highlights a special feature of cryptocurrency trading and offers information about investor behavior that cannot be observed in traditional financial markets. We find that investors prefer holding bit-coin off exchanges in private wallets and primarily use exchanges to trade. Consequently, bitcoin exchange reserve changes resulting from the movement of bitcoin between private wallets and exchange accounts are negatively related to contemporaneous and future bitcoin returns. Specifically, the transfer of bitcoin on exchanges implies increased selling pressure and the transfer off exchanges implies decreased selling pressure. In turn, flows onto exchanges are triggered by large negative shocks and increased volatility. (c) 2022 Elsevier B.V. All rights reserved.

【Keywords】Blockchain; Bitcoin; Exchange reserves; Price pressure; On-chain transactions; Off-chain transactions

【发表时间】2022 NOV

【收录时间】2023-03-01

【文献类型】观点阐述

【主题类别】

区块链治理-市场治理-数字货币