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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