Pending Research Findings
Research under review finds a relationship between the blockchain's mining power (hash rate), and price volatility between corresponding trading exchanges (centralized). The period used in the study is rather short, and it does not cover any large market shocks (covid or SVB failure). Regardless, the hypothesis and finding is basically that large decreases in blockchain hash rate capacity are indicative of price volatility. Why is price volatility across tradeable markets an interesting finding? Well, if the same asset is trading for different prices at two different exchanges, then arbitrage is possible.
Data Availability
Are you interested in re-producing or verifying the findings on your own?
We have the Blockchain hash rate (mining power) available via our API resource and of course we also have daily, hourly, and minute interval data for free by exchange across our historical data resources.
Author
To read the research paper.
Lin, Kaitao, Blockchain Mining Power and Market Quality in Cryptocurrency Trading. Available at SSRN:
https://ssrn.com/abstract=4690799
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