Economics, Econometrics and Finance
6 years ago

Bitcoin futures market dominates price discovery process, impacting cryptocurrency values.

1 view
Economics Letters
An analysis of price discovery between Bitcoin futures and spot markets
Burcu Kapar, José Olmo

Paper Summary

The study looked at how Bitcoin prices are determined by comparing futures and spot markets. They found that the Bitcoin futures market plays a bigger role in setting prices. Both futures and spot prices are influenced by a common factor that combines both markets. When the futures and spot prices are not in line, it can predict changes in the spot price.

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