According to DePocket, BTC has a high possibility to become a potential property for investors to protect themselves from the economic recession which is thought to be able to happen because of the plan to increase the interest rate of FED and the higher demands to purchase government bonds, which derives from the recession of the global economy. Let’s see some on-chain analyses today.
In the first picture, BTC All Exchanges Netflow Index has recently shown insignificant changes in BTC inflows and outflows on all exchanges. However, the average number of BTC on all exchanges has been falling, and more BTC are afforded by big institutions around 40k. This would then strongly prove the positive prospect of the upcoming robust escalation is very reasonable.
The Open Interest Index in the second picture has recently lightly risen although the BTC price is massively reversing, which shows that future traders have no intentions to join the market at present since the market is extremely sophisticated. This phenomenon would lead to the result that BTC price would get easier to climb up since there are fewer possibilities for the CEX to kill the margin orders.
The Funding Rate Index in the third picture displays that there are no considerable funding rates now and the funding rate of short positions was exceedingly eradicated when BTC price suddenly rocketed. DePocket finds that it is more advantageous for the market to frantically recover if the availability of margin trading is much less and we are now seeing the less significantly activated of these activities as the funding rates are not to mention.
The Hashrate Index in the fourth picture has just surprisingly gone up, which coincides with the point of time of BTC price reversal from 35k to 42k. DePocket perceives this as a very positive signal that contributes to the continual rise in BTC price in the future as BTC miners are doing well in their businesses and they will soon eliminate all mining difficulties in relation to politics.
Source: Cryptoquant.
