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Data from the chain shows that the supply of Bitcoin older than two years has recently moved to derivatives exchanges, suggesting whales may be positioning themselves in the futures market.
Derivatives Exchange Bitcoin Supply Inflow Over 2 Years Has Increased
As noted by an analyst in a CryptoQuant afterrecent short-term dominant open interest has fallen, while some old currencies have just shifted to exchanges.
The relevant indicator here is the “derivative” exchange intake”, which measures the total amount of Bitcoin going into the wallets of all derivatives exchanges.
An adapted version of this statistic, the ‘age classes for inflow spent output’, tells us what the individual contribution has been of the different age groups of the holder to the total inflow.
The investor cohorts of interest here are those who have been holding their coins for at least 2 years without selling or moving them (before now).
Looks like the value of the metric has spiked up over the past day | Source: CryptoQuant
As you can see in the chart above, Bitcoin derivatives exchange inflows from the 2-year-old investor group have been on the rise lately.
This shows that these BTC hodlers are moving significant amounts of money to exchanges to set up positions in the derivatives market.
It is unclear whether this transfer is intended to open long positions or whether it is intended to hedge spot positions with shorts.
The trend in another indicator, the open interest, may contain hints about the destination of this influx. This metric measures the total number of positions currently open on derivatives exchanges.
Recently, financing rates were slightly negative, implying that open interest was short-dominant. But as the chart below shows, the value of this indicator has fallen in the past day.
The value of the indicator seems to have slumped down after rising during the last few days | Source: CryptoQuant
The value of Bitcoin’s falling open interest may indicate that some short positions are now closed.
It now remains to be seen whether the market will shift into a long-dominant environment in the coming days as exchanges receive new large inflows like the most recent.
At the moment of writing, The price of Bitcoin hovers around $19.7k, down 2% over the past seven days. Over the past month, the crypto has fallen 12% in value.
Below is a chart showing the trend in the price of the coin over the past five days.
The value of BTC hasn't showed much movement during the last few days | Source: BTCUSD on TradingView
Featured image from André François McKenzie on Unsplash.com, charts from TradingView.com, CryptoQuant.com