Old Bitcoin Supply Moves Into Derivatives, Whales Setting Up Long Positions?
06 September 2022 - 5:00AM
NEWSBTC
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. Derivative Exchange
Inflow Of Bitcoin Supply Older Than 2 Years Has Spiked Up As
pointed out by an analyst in a CryptoQuant post, the recent
short-dominant open interest has gone down while some old coins
have just been shifted into exchanges. The relevant indicator here
is the “derivative exchange inflow,” which measures the total
amount of Bitcoin moving into wallets of all derivative exchanges.
A modified version of this metric, the “inflow spent output age
bands,” tells us what the individual contribution has been from the
various holder age groups to the total inflows. 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). Looks like the value of the metric has spiked up over
the past day | Source: CryptoQuant As you can see in the above
graph, the Bitcoin derivative exchange inflow from the 2 years+ old
investor group has spiked up recently. This shows that these BTC
hodlers are moving significant amounts to exchanges for setting up
positions in the derivatives market. Related Reading: How To Become
A Millionaire? Invest In Uniglo (GLO), Bitcoin (BTC) And Polygon
(MATIC) It’s unclear whether this transfer is with the intent of
opening long positions, or if it’s for hedging spot positions using
shorts. However, the trend in another indicator, the open interest,
may hold hints about the destination of these inflows. This metric
measures the total amount of positions currently open on derivative
exchanges. Recently, the funding rates were slightly negative,
implying that the open interest was short-dominant. But as the
below chart highlights, this indicator’s value has gone down during
the past day. The value of the indicator seems to have slumped down
after rising during the last few days | Source: CryptoQuant The
value of the Bitcoin open interest declining can suggest some of
the short positions have now been closed down. Related Reading:
Bitcoin Price May Rally If Buyers Jump Above This Hurdle 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. BTC Price At
the time of writing, Bitcoin’s price floats around $19.7k, down 2%
in the last seven days. Over the past month, the crypto has lost
12% in value. Below is a chart that shows the trend in the price of
the coin over the last five days. The value of BTC hasn't showed
much movement during the last few days | Source: BTCUSD on
TradingView Featured image from André François McKenzie on
Unsplash.com, charts from TradingView.com, CryptoQuant.com
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