18 Comments
May 10, 2023Liked by Ben Lilly

thank you, very informative

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May 10, 2023·edited May 10, 2023

The first length between peaks is 144 days as DVOL has missing data, it's on your chart. Also, first two you measure peak-to-peak, the 3rd is peak-to-trough.

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The formula is open interest divided by the amount of coins held in the reserve. You can dissect it by a particular exchange as well. My understanding is that Volatilities are driven by the liquidations and leverages in the system as was witnessed during the May 2021 meltdown.

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low volatility is a result of the leverage ratio hitting all time low territory...volatility moves are correlated with the amount of leverage in the system.

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Another great article! This one bent my brain a little. I absolutely loved the clever "soap box vs gas powered vehicle" description of prices of Bitcoin rising and falling, did I get it right that it was explaining the range bound activity of BTC price, touching the upper and lower liquidity pools?

Does anyone else think that 27k seems high for accumulation for bigger players?Maybe an all BTC position is better than cash or a scary stable coin, that's not so stable. Just buy BTC and cold wallet it. Fantastic article, again. Your content is better and different than anything else I have been reading. Congrats and keep it up, I so look forward to your articles in my inbox.

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