The Crypto Market Is quiet…too Quiet (Is This the Calm Before the Storm?)

July 22, 2023

0 0 2 minutes read

‘Digital asset funding merchandise’ (i.e cryptocurrencies) have seen $137M of in-flows over the previous week ($742M over the previous month).
Buying and selling volumes have surpassed the yearly common of $1.4B, reaching $2.3B over the previous week.
And whereas all of this has been taking place, cash has been flowing out of Bitcoin brief positions (aka ‘bets that BTC will fall in value’).
Regardless of all of this, crypto costs have stayed comparatively flat (general) for the previous two weeks. Eerie ain’t it? Appears like a storm is brewing.

You understand that ‘calm earlier than the storm’ feeling you get whenever you’re about to get in bother along with your important different?

You begin noticing a string of pointed silences, one phrase solutions, and an entire bunch of ‘I am superb’s.

Yeah, nicely – we’re getting an analogous feeling with the crypto market…

Besides it is not spelling bother! Fairly the alternative.

Here is what’s fueling all of it:

‘Digital asset funding merchandise’ (i.e cryptocurrencies) have seen $137M of in-flows over the previous week ($742M over the previous month).

☝️ That is probably the most substantial quantity of latest cash coming into the market since late 2021 (peak bull run)!
PLUS! Buying and selling volumes have surpassed the yearly common of $1.4B, reaching $2.3B over the previous week.

…why is {that a} good factor?

Crypto is at the moment in an uptrend, and excessive or rising quantity in an uptrend typically indicators a shopping for alternative.

Which regularly results in (you guessed it) extra shopping for, and extra shopping for typically results in elevated costs.
And at last – whereas all of this has been taking place, cash has been flowing out of Bitcoin brief positions (aka ‘bets that BTC will fall in value’).

For context: again in April merchants had been wagering a complete of ~$198M that BTC would go down in value. Final week, that determine bottomed out at ~$55M.

Ethical of the story: the market is starting to suppose it is a dumb concept to guess towards BTC proper now.

Okay, so if volumes are up, brief positions are down, and we’re seeing bull run ranges of in-flows…then the place’s the value motion?

We don’t know ¯_(ツ)_/¯

Regardless of all of this, crypto costs have stayed comparatively flat (general) for the previous two weeks.

Eerie ain’t it?