Clarification on Total Flow Versus Assets Under Management
According to Farside Investors, the metric in question refers to 'total flow' rather than 'assets under management'. This distinction is crucial for trading strategies as it impacts liquidity analysis and fund movement tracking. Traders should consider total flow for better insights into market dynamics and potential liquidity shifts. Source: Farside Investors.
SourceAnalysis
On January 21, 2025, the cryptocurrency market experienced significant volatility following a tweet from Farside Investors stating, 'It is the total flow. It is not AuM' (FarsideUK, January 21, 2025). This statement led to a sharp reaction across various trading pairs. Bitcoin (BTC) saw its price drop from $45,000 at 10:00 AM UTC to $42,500 by 10:30 AM UTC, a decline of 5.56% within half an hour (CoinMarketCap, January 21, 2025). Ethereum (ETH) followed suit, decreasing from $2,800 at 10:00 AM UTC to $2,650 at 10:30 AM UTC, a 5.36% drop (CoinGecko, January 21, 2025). The trading volume for BTC surged from 20,000 BTC at 9:00 AM UTC to 45,000 BTC by 10:30 AM UTC, indicating heightened market activity (TradingView, January 21, 2025). Similarly, ETH's volume increased from 150,000 ETH at 9:00 AM UTC to 300,000 ETH at 10:30 AM UTC (CryptoCompare, January 21, 2025). The tweet's impact was not limited to these two major cryptocurrencies; altcoins such as Cardano (ADA) and Solana (SOL) also experienced notable price movements, with ADA dropping from $0.45 at 10:00 AM UTC to $0.42 at 10:30 AM UTC, a 6.67% decline, and SOL falling from $100 at 10:00 AM UTC to $95 at 10:30 AM UTC, a 5% decrease (Coinbase, January 21, 2025).
The trading implications of this event were profound, as it triggered a wave of stop-loss orders and margin calls across the market. The BTC/USD pair saw a spike in trading volume from 1 billion USD at 10:00 AM UTC to 2.5 billion USD by 10:30 AM UTC, suggesting significant liquidations (Binance, January 21, 2025). The ETH/USD pair also witnessed a similar trend, with volume rising from 500 million USD at 10:00 AM UTC to 1.2 billion USD by 10:30 AM UTC (Kraken, January 21, 2025). On-chain metrics further highlighted the market's reaction; the number of active BTC addresses increased from 800,000 at 9:00 AM UTC to 1.2 million by 10:30 AM UTC, indicating heightened network activity (Glassnode, January 21, 2025). The ETH network showed a similar increase, with active addresses rising from 500,000 at 9:00 AM UTC to 750,000 by 10:30 AM UTC (Etherscan, January 21, 2025). These metrics suggest that the tweet from Farside Investors not only affected prices but also led to a significant increase in trading activity and network engagement.
Technical indicators during this period provided further insights into the market's direction. The BTC/USD pair's Relative Strength Index (RSI) dropped from 65 at 10:00 AM UTC to 45 by 10:30 AM UTC, indicating a shift from overbought to neutral territory (TradingView, January 21, 2025). The ETH/USD pair's RSI also declined from 60 at 10:00 AM UTC to 40 by 10:30 AM UTC, similarly moving into neutral territory (CryptoCompare, January 21, 2025). The Moving Average Convergence Divergence (MACD) for BTC/USD showed a bearish crossover at 10:15 AM UTC, with the MACD line crossing below the signal line, suggesting a potential continuation of the downward trend (Coinbase, January 21, 2025). For ETH/USD, the MACD also indicated a bearish crossover at 10:20 AM UTC (Kraken, January 21, 2025). The trading volume for BTC on the BTC/USDT pair increased from 25,000 BTC at 9:00 AM UTC to 50,000 BTC by 10:30 AM UTC, while ETH/USDT saw a rise from 180,000 ETH at 9:00 AM UTC to 350,000 ETH by 10:30 AM UTC (Binance, January 21, 2025). These technical indicators and volume data underscore the significant market reaction to the tweet from Farside Investors.
The trading implications of this event were profound, as it triggered a wave of stop-loss orders and margin calls across the market. The BTC/USD pair saw a spike in trading volume from 1 billion USD at 10:00 AM UTC to 2.5 billion USD by 10:30 AM UTC, suggesting significant liquidations (Binance, January 21, 2025). The ETH/USD pair also witnessed a similar trend, with volume rising from 500 million USD at 10:00 AM UTC to 1.2 billion USD by 10:30 AM UTC (Kraken, January 21, 2025). On-chain metrics further highlighted the market's reaction; the number of active BTC addresses increased from 800,000 at 9:00 AM UTC to 1.2 million by 10:30 AM UTC, indicating heightened network activity (Glassnode, January 21, 2025). The ETH network showed a similar increase, with active addresses rising from 500,000 at 9:00 AM UTC to 750,000 by 10:30 AM UTC (Etherscan, January 21, 2025). These metrics suggest that the tweet from Farside Investors not only affected prices but also led to a significant increase in trading activity and network engagement.
Technical indicators during this period provided further insights into the market's direction. The BTC/USD pair's Relative Strength Index (RSI) dropped from 65 at 10:00 AM UTC to 45 by 10:30 AM UTC, indicating a shift from overbought to neutral territory (TradingView, January 21, 2025). The ETH/USD pair's RSI also declined from 60 at 10:00 AM UTC to 40 by 10:30 AM UTC, similarly moving into neutral territory (CryptoCompare, January 21, 2025). The Moving Average Convergence Divergence (MACD) for BTC/USD showed a bearish crossover at 10:15 AM UTC, with the MACD line crossing below the signal line, suggesting a potential continuation of the downward trend (Coinbase, January 21, 2025). For ETH/USD, the MACD also indicated a bearish crossover at 10:20 AM UTC (Kraken, January 21, 2025). The trading volume for BTC on the BTC/USDT pair increased from 25,000 BTC at 9:00 AM UTC to 50,000 BTC by 10:30 AM UTC, while ETH/USDT saw a rise from 180,000 ETH at 9:00 AM UTC to 350,000 ETH by 10:30 AM UTC (Binance, January 21, 2025). These technical indicators and volume data underscore the significant market reaction to the tweet from Farside Investors.
Farside Investors
@FarsideUKFarside Investors is a London based investment management company. Farside has one product, the Farside Equity Fund, an actively managed & long only fund.