September 27, 2021, 5:31AM EDT
• 7 min read

To what extent are Bitcoin exchange flows, trading volumes, and price related? A historical view

Quick Take

  • The net amount of Bitcoin flowing into exchanges was only weakly related to the amount of Bitcoin being traded
  • The amount of Bitcoin being traded is predicted by its internal structure over time much better than are the net amount of Bitcoin flowing into exchanges
  • Despite a clear relationship between Bitcoin trading volumes and price, trading volumes slightly decrease explanatory power when modeling price with its internal structure over time

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