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Market reaction to large transfers on the Bitcoin blockchain - Do size and motive matter?

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  • Ante, Lennart
  • Fiedler, Ingo

Abstract

How does the market react to large Bitcoin transactions? We analyze effects of 2,132 transactions involving at least 500 Bitcoins. While results for all transactions are inconclusive, further analysis of transaction size and presumed transfer motives based on publicly known Bitcoin addresses of cryptocurrency exchanges reveals significant price effects depending on the type of transaction. The results indicate that the market recognizes the nature of the transfer and prices in new information.

Suggested Citation

  • Ante, Lennart & Fiedler, Ingo, 2021. "Market reaction to large transfers on the Bitcoin blockchain - Do size and motive matter?," Finance Research Letters, Elsevier, vol. 39(C).
    • Handle: RePEc:eee:finlet:v:39:y:2021:i:c:s1544612320304438
    DOI: 10.1016/j.frl.2020.101619
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    References listed on IDEAS

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    Cited by:

    1. Yeguang Chi & Qionghua & Chu & Wenyan Hao, 2024. "Return-forecasting and Volatility-forecasting Power of On-chain Activities in the Cryptocurrency Market," Papers 2411.06327, arXiv.org.
    2. Ante, Lennart, 2023. "How Elon Musk's Twitter activity moves cryptocurrency markets," Technological Forecasting and Social Change, Elsevier, vol. 186(PA).
    3. Lennart Ante & Ender Demir, 2024. "The ChatGPT effect on AI-themed cryptocurrencies," Economics and Business Letters, Oviedo University Press, vol. 13(1), pages 29-38.
    4. Hoang, Lai T. & Baur, Dirk G., 2022. "Loaded for bear: Bitcoin private wallets, exchange reserves and prices," Journal of Banking & Finance, Elsevier, vol. 144(C).
    5. Martins, António Miguel, 2024. "Short-term market impact of crypto firms’ bankruptcies on cryptocurrency markets," Research in International Business and Finance, Elsevier, vol. 70(PB).
    6. Rubaiyat Ahsan Bhuiyan & Afzol Husain & Changyong Zhang, 2023. "Diversification evidence of bitcoin and gold from wavelet analysis," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 9(1), pages 1-36, December.
    7. Ante, Lennart & Fiedler, Ingo & Strehle, Elias, 2021. "The impact of transparent money flows: Effects of stablecoin transfers on the returns and trading volume of Bitcoin," Technological Forecasting and Social Change, Elsevier, vol. 170(C).

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