On-chain data shows Bitcoin supply older than two years has moved into derivative exchanges recently, suggesting whales may be positioning themselves on the futures market.<\/p>\n
Derivative Exchange Inflow Of Bitcoin Supply Older Than 2 Years Has Spiked Up<\/p>\n
As pointed out by an analyst in a CryptoQuant post<\/a>, the recent short-dominant open interest has gone down while some old coins have just been shifted into exchanges.<\/p>\n The relevant indicator here is the \u201cderivative exchange inflow<\/a>,\u201d which measures the total amount of Bitcoin moving into wallets of all derivative exchanges.<\/p>\n A modified version of this metric, the \u201cinflow spent output age bands,\u201d tells us what the individual contribution has been from the various holder age groups to the total inflows.<\/p>\n The investor cohorts of interest here are those who have been holding onto their coins since at least 2 years without having sold or moved them (before now).<\/p>\n\n Looks like the value of the metric has spiked up over the past day | Source: CryptoQuant<\/a><\/p>\n As you can see in the above graph, the Bitcoin derivative exchange inflow from the 2 years+ old investor group has spiked up recently.<\/p>\n This shows that these BTC hodlers are moving significant amounts to exchanges for setting up positions in the derivatives market.<\/p>\n It\u2019s unclear whether this transfer is with the intent of opening long positions, or if it\u2019s for hedging spot positions using shorts.<\/p>\n However, the trend in another indicator, the open interest<\/a>, may hold hints about the destination of these inflows. This metric measures the total amount of positions currently open on derivative exchanges.<\/p>\n Recently, the funding rates were slightly negative, implying that the open interest was short-dominant. But as the below chart highlights, this indicator\u2019s value has gone down during the past day.<\/p>\n\n The value of the indicator seems to have slumped down after rising during the last few days | Source: CryptoQuant<\/a><\/p>\n The value of the Bitcoin open interest declining can suggest some of the short positions have now been closed down.<\/p>\n It now remains to be seen whether the market shifts towards a long-dominant environment or not in the coming days as exchanges receive fresh large inflows like the most recent one.<\/p>\n BTC Price<\/p>\n At the time of writing, Bitcoin\u2019s price<\/a> floats around $19.7k, down 2% in the last seven days. Over the past month, the crypto has lost 12% in value.<\/p>\n Below is a chart that shows the trend in the price of the coin over the last five days.<\/p>\n\n The value of BTC hasn’t showed much movement during the last few days | Source: BTCUSD on TradingView<\/a> <\/p>\n On-chain data shows Bitcoin supply older than two years has moved into derivative exchanges recently, suggesting whales may be positioning themselves on the futures market.<\/p>\n Derivative Exchange Inflow Of Bitcoin Supply Older Than 2 Years Has Spiked Up<\/p>\n As pointed out by an analyst in a CryptoQuant post<\/a>, the recent short-dominant open interest has gone down while some old coins have just been shifted into exchanges.<\/p>\n The relevant indicator here is the \u201cderivative exchange inflow<\/a>,\u201d which measures the total amount of Bitcoin moving into wallets of all derivative exchanges.<\/p>\n A modified version of this metric, the \u201cinflow spent output age bands,\u201d tells us what the individual contribution has been from the various holder age groups to the total inflows.<\/p>\n The investor cohorts of interest here are those who have been holding onto their coins since at least 2 years without having sold or moved them (before now).<\/p>\n Looks like the value of the metric has spiked up over the past day | Source: CryptoQuant<\/a><\/p>\n As you can see in the above graph, the Bitcoin derivative exchange inflow from the 2 years+ old investor group has spiked up recently.<\/p>\n This shows that these BTC hodlers are moving significant amounts to exchanges for setting up positions in the derivatives market.<\/p>\n It\u2019s unclear whether this transfer is with the intent of opening long positions, or if it\u2019s for hedging spot positions using shorts.<\/p>\n However, the trend in another indicator, the open interest<\/a>, may hold hints about the destination of these inflows. This metric measures the total amount of positions currently open on derivative exchanges.<\/p>\n Recently, the funding rates were slightly negative, implying that the open interest was short-dominant. But as the below chart highlights, this indicator\u2019s value has gone down during the past day.<\/p>\n The value of the indicator seems to have slumped down after rising during the last few days | Source: CryptoQuant<\/a><\/p>\n The value of the Bitcoin open interest declining can suggest some of the short positions have now been closed down.<\/p>\n It now remains to be seen whether the market shifts towards a long-dominant environment or not in the coming days as exchanges receive fresh large inflows like the most recent one.<\/p>\n BTC Price<\/p>\n
\nFeatured image from Andr\u00e9 Fran\u00e7ois McKenzie on Unsplash.com, charts from TradingView.com, CryptoQuant.com<\/p>","protected":false},"excerpt":{"rendered":"