Do Coinbase’ Bitcoin Volumes Precede BTC’s Price Moves? Analyst Investigates
18/12 23:15
When Bitcoin’s price drops, it seems to influence the trading patterns on Coinbase (COIN), which see a drop in volume too. However, Mizuho Securities Dan Dolev has noticed there may be another pattern playing out.
“Common sense tells us that changes in Bitcoin prices can influence trading behavior on the COIN platform,” the analyst said. “But is the opposite true too at times? Said differently: could changes in COIN's market share of Bitcoin prove to be a potential leading indicator for Bitcoin prices?”
Dolev has looked into this and has calculated the number of Bitcoins traded on Coinbase times the average daily price of Bitcoin to gauge Coinbase’s market share as a percentage of total global Bitcoin volumes. The results might shed light on a “potential pattern between changes in Coinbase’ Bitcoin market share vs. changes to Bitcoin’s price.”
It seems that in recent months, both the upward and downward trajectory in Coinbase’ market share of Bitcoin volume ...