While the market is struggling with the continuous drop in BTC price, DePocket has just been aware of some noticeable things when analyzing the market. Stunningly, a massive amount of money has just been deposited to mostly derivative exchanges. This makes investors feel quite hard to understand what whales are doing. Let’s get to some Indexes with DePocket.
The first picture shows the movement of the Coinbase Premium Index which is represented by the blue line. The increasing value of this Index recently reflects a higher price of BTC on Coinbase Exchange than the BTC price on Binance Exchange. This phenomenon proves that some whales are strongly buying more BTC on Coinbase, which then makes the BTC demand go higher and eventually raise the BTC price up.
Some members in DePocket ask me to give views about ETH, so I bring it to DePocketers now in the second picture. ETH has been observing a constantly rising trend of the ETH value stakes. This would lead to the result of a shock in deficiency of ETH supply, and sequentially make the ETH price reverse insanely.
Even though the ETH price has dramatically declined, the Etherium investors continue to show more interest in withdrawing ETH from all exchanges to hold. In the third picture, you can identify that the value of the Etherium Exchange Reserve Index to be shown by the blue line has constantly diminished, which proves individuals are paying more attention and belief on this long-term investing digital asset.
In the fourth picture, the all Stablecoins Exchange Reserve Index witnesses a sudden surge as the blue line suddenly goes up. This means a huge quantity of stablecoins has just been deposited to all exchanges, and DePocket will help you find out the specific destination this sum of money flows to.
Checking the Stablecoins Spot Exchange Netflow in the fifth picture gives us a view that there is no significant increase in stablecoins inflow on the spot exchanges as no considerably high upward green column takes place. Hence, the impressive rise of Stablecoins inflow into the market may happen on the derivative exchanges, so let’s check now.
In the sixth picture, the appearance of the exceptionally high green column proves that most stablecoins have gone to derivative exchanges. If it was the spot exchanges where those stablecoins are deposited, the market would see a more optimistic signal. In this situation, the act of depositing more stablecoins onto derivative exchanges simply manifests that whales just want to participate in future trading activities instead of buying more BTC.
In a nutshell, BTC keeps being taken out from exchanges which indicates a very positive signal for the next upcoming strong reversal. Investors should be optimistic as in the long-term market makers’ perspective, BTC is a kind of asset that makes insane profits for them, so the game of cryptocurrencies will prolong much longer.
Source: Cryptoquant.
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