Overview and details of the sessions of this conference. Please select a date or location to show only sessions at that day or location. Please select a single session for detailed view (with abstracts and downloads if available).
Dynamics of exchange trading and Blockchain settlement
Dominik Roesch
University at Buffalo
I analyze the joint dynamics of Bitcoin trading on exchanges and on the blockchain (“settlement”) from 2009 to 2023. Aggregate trading and settlement exhibit a strong shared trend both on a daily and intra-day basis. Monthly correlations average 40%, though they vary significantly over time and across exchanges. In aggregate and for regulated exchanges, but not for several unregulated exchanges, increased trading ac- tivity leads to higher settlement both contemporaneously and in subsequent periods. Ranking exchanges by how trading influences settlement provides a useful quality met- ric: increased trading driving higher settlement indicates that exchanges or their clients settle trades frequently, making the exchange less vulnerable to bank-runs and default. On the contrary, I identify BTCC, LocalBitcoins, and Yobit as exchanges with elevated default risk.
