On-chain analysis

Bitcoin moved sideways around $ 45,000 yesterday. The market has largely followed the Bitcoin trend for a long time. As BTC grows, altcoins often move sideways or lower. But as BTC stabilized and moved sideways, the altcoins began to grow.

Existence and evolution over the years, BTC continues to be at the forefront of market capitalization and is the most popular coin. Hence, on-chain data, which is often focused on BTC, has higher accuracy and reflects market trends.

In addition to the previously updated on-chain data, Thuan will update additional data in the future. The first updated on-chain index is the amount of BTC that is deposited on exchanges. In the past few days, the BTC bears seem to pile up more and the number of withdrawals from the exchange has increased compared to the previous days. This is also the 12th day in a row that more BTC has been withdrawn from the exchange than has been deposited.

The most heavily withdrawn BTC, however, do not come from regular exchanges (spot exchanges), but from derivatives exchanges (future, margin). In growth phases when there is a lot of money on the futures exchanges. High Long Orders and combined with High BTC win rate will easily lead to profit taking and long squeeze. And a similar drop is easy to see right now.

In general, BTC is decreasing on exchanges including regular exchanges or derivatives. The recent drop in prices hardly had any impact on long-term investors, but they did amass more BTC. On the futures exchanges, the long / short ratio is quite balanced.

The number of stablecoins on the exchanges has now decreased after the correction. Stable coins that are rising on the exchanges often indicate the need to wait to buy crypto. When a stable amount of copper fell to the ground, this also reflected a fall in demand. At this time, exchanges often convert stable coins into fiat money to use for appropriate purposes.

Long term investors continue to accumulate, but there is still selling power from short term investors or newcomers to the market. The Short Term Index is often below 0. This means that the confidence of newcomers or short-term investors has not yet recovered. You are still ready to sell despite the loss.

Cash flow from institutions that invest in crypto

Coinshare data has updated major investor investment trends in the crypto market.

The week ending September 3, 2021 was the third straight week of positive institutional growth in crypto investments. Digital asset investment products recorded total inflows of $ 98 million.

Inflows into Bitcoin were $ 58.9 million and ETH was $ 14.4 million. Some other small altcoins like SOL (13.2 million USD), ADA, DOT, XRP, …

Some other information:

• Binance will support Cardano (ADA) network upgrade & hard fork. ADA network upgrade and hard fork begin in epoch 290 or on September 12, 2021 at 9:44 p.m. (UTC). ADA deposits and withdrawals will be suspended from September 21, 2021 (UTC). And ADA trading on the exchange will continue to take place normally. Binance will reopen ADA deposits and withdrawals as soon as we consider the updated network stable and not notify users in another notice.

• Payment giant Mastercard has agreed to buy CipherTrace, a company that scans blockchains for illegal transactions.

• The investment arm of the DZ Union Investment (Germany) banking group is taking another step to offer private investors crypto investment services. They intend to convert around 1-2% of their investment into BTC.

• Australia’s top banks are refusing to do business with crypto companies. Australia’s two largest banks, National Australia Bank (NAB / NAB.AX) and Westpac (WBC.AX) have fended off criticism of their decisions against doing business with investors.