@ben Not so much a new metric, but I'd like to zoom out and reassess where we stand. Netflows are interesting but pretty short term. Maybe look into MVRV Z, S2F(X), RHODL, and longer term on-chain metrics.
I have a question for you about BTC inflows. Cryptoquant labels Bitfinex and Binance exchanges as "Derivatives" but they are also high volume SPOT exchanges. Especially Bitfinex where the volumes, when compared with futures, it is noted that the largest volume is in the SPOT market.
I'll give you a hypothetical use case on the Bitfinex exchange.
Jack deposits 10 BTC on Bitfinex, Cryptoquant detects a deposit on Derivatives equal to 10 BTC, Jack uses these 10 BTC as collateral as his position is suffering the downside. In this case Jack is NOT selling his BTC but is just using it as a hedge to defend his losing trade.
Then we have another case where Jack deposits 10 BTC on Bitfinex to sell them in the SPOT market. And in this case he creates sales pressure. However, in this case Cryptoquant does not label the inflow as SPOT but as a Derivative.
I'd like to hear your reading about it. Thanks :)
P.S The example above can also be used with stablecoin inflows, where they can serve as collateral.
@ben Not so much a new metric, but I'd like to zoom out and reassess where we stand. Netflows are interesting but pretty short term. Maybe look into MVRV Z, S2F(X), RHODL, and longer term on-chain metrics.
good hindsight analysis. another analyst that predicted the future
Hi Guys, great job as always.
I have a question for you about BTC inflows. Cryptoquant labels Bitfinex and Binance exchanges as "Derivatives" but they are also high volume SPOT exchanges. Especially Bitfinex where the volumes, when compared with futures, it is noted that the largest volume is in the SPOT market.
I'll give you a hypothetical use case on the Bitfinex exchange.
Jack deposits 10 BTC on Bitfinex, Cryptoquant detects a deposit on Derivatives equal to 10 BTC, Jack uses these 10 BTC as collateral as his position is suffering the downside. In this case Jack is NOT selling his BTC but is just using it as a hedge to defend his losing trade.
Then we have another case where Jack deposits 10 BTC on Bitfinex to sell them in the SPOT market. And in this case he creates sales pressure. However, in this case Cryptoquant does not label the inflow as SPOT but as a Derivative.
I'd like to hear your reading about it. Thanks :)
P.S The example above can also be used with stablecoin inflows, where they can serve as collateral.
Excellent! Thanks guys!
Nice “hindsight trading”.
Easy to write up something after the fact.