Using event study methodology, we identify significant positive abnormal trading volume for the 15-minute window before a large Bitcoin transaction as well as during and after the event. We collect data on 2132 large transactions on the Bitcoin blockchain between September 2018 and November 2019, where 500 or more Bitcoins were transferred. This paper investigates trading volume and its relation to asymmetric information around transfers on the Bitcoin blockchain.
When someone transfers a large number of Bitcoins, the market receives this information and traders can adjust their expectations based on the new information. The underlying transparency of the Bitcoin blockchain allows transactions in the network to be tracked in near real-time.
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