How do Bitcoin market entities affect the price of Bitcoin?
Best insight from top research papers
Bitcoin market entities, such as exchanges and derivatives, play a significant role in affecting the price of Bitcoin. Different platforms contribute differently to price discovery, with the Chinese OKCoin platform being identified as the leader in price discovery, followed by BTC China . Unregulated exchanges, such as Huobi, OKEx, and BitMEX, are found to be the strongest instruments for Bitcoin price discovery, while regulated exchanges and futures markets react to price movements on unregulated exchanges rather than leading them . The absence of customer identification requirements in certain markets can lead to deviations from representative market prices, highlighting the impact of financial regulations on the Bitcoin market . Additionally, the Chinese stock market has a causal link with Bitcoin prices, with short-run causality observed from the Shanghai Composite Index and Shenzhen Composite Index to Bitcoin price . The spot market, with its higher trading volume and longer trading hours, leads the futures market in providing useful information for Bitcoin price discovery .
Answers from top 5 papers
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| Papers (5) | Insight |
|---|---|
| The paper does not directly address how Bitcoin market entities affect the price of Bitcoin. The paper focuses on the impact of financial regulations, specifically know-your-customer regulations, on Bitcoin prices across different markets. | |
39 Citations | The paper does not directly answer the question of how Bitcoin market entities affect the price of Bitcoin. The paper focuses on the impact of unregulated markets on price discovery in Bitcoin. |
| The provided paper does not directly address how Bitcoin market entities affect the price of Bitcoin. The paper focuses on price discovery analysis and determining the most important Bitcoin trading platforms in terms of price formation. | |
| The provided paper does not directly address how Bitcoin market entities affect the price of Bitcoin. The paper focuses on the causal link between Chinese exchanges and Bitcoin prices. | |
2 Citations | The provided paper does not directly address how Bitcoin market entities affect the price of Bitcoin. |
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