Recent events and their results will shape the future of crypto space. Events like Ripple partially winning the battle against SEC, SEC filing case against major players like Binance US, Coinbase and regulatory structuring around the globe for crypto space. Amid of these events, investors and traders including institutional as well as retail traders are showing low activity in the market. This is changing the way traders trade the crypto market. In this article, we will look into some data that shows how these trading changes are happening and what could be the result of it on the crypto space, so let's dive in....!!
Bitcoin Trading Volume
Below is the Spot-Derivatives trading volume chart. As we can see on the 11 of January, the peak was around 36% and it has been drop down to 6% in July. This shows that the spot market is drying up and most of the trading is happening on the Derivatives market. This means that the ownership of Bitcoin is not changing, as most of the trading is done through Derivatives market.
source: cryptoquant.com
Binary CDD: No Aggressive Sales from Long-Term BTC Holders
Below is the Binary CDD (Coin Destroyed Days) chart, which gives the idea about the average movement of the long-term holders. Simple reading of this chart is, if the value of dense 1s then long-term holders is moving their coins, most commonly for selling and if the density is low then it is supposed that the long-term holders are not moving their coins.
source: cryptoquant.com
Now, as you can see in the chart above, the density of the 1s (spikes) is low, means that the long-term holders are not moving their coins. This implies that the long-terms holders are not much interested in selling their coins in the current market.
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BTC Spot Volume
Retail traders are highly active on Spot market, so it's sort important to look into it more deeply. As you can see in the chart below, it clearly shows that the spot market is dried up. In March, the total spot volume was 2.5 million BTC which dropped to 600 thousand BTC in July, that is very large drop!
source: cryptoquant.com
Conclusion
Now let's conclude some of the possible outcomes based on the data that we saw above.
- Long-term traders are not selling their bag, shows that they are not interested in current market price.
- Retail traders are not buying as well, shows retail is not confident in buying.
-The entire community of crypto traders and investors is in uncertainty, everyone is keeping the calm and waiting for the triggers.
-This calm suggests that the market is getting mature and it's a great thing for crypto space!
Hope you guys find this short article informative! If yes, then do follow me and share your views on the current crypto market in the comment section.
Thanks for Your Time!
