Clarification on Total Flow vs. Assets Under Management in Cryptocurrency
According to Farside Investors, the term 'total flow' should not be confused with 'Assets under Management (AuM)', which is crucial for traders to differentiate when analyzing market movements and trading volumes in the cryptocurrency sector.
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On January 21, 2025, a significant market event occurred when Farside Investors clarified via Twitter that the reported figures represent total flow, not Assets under Management (AuM), in the cryptocurrency market (Source: @FarsideUK, January 21, 2025). This clarification came after a period of confusion among traders and investors regarding the metrics used to evaluate the market's health. At 10:00 AM UTC on January 21, 2025, the Bitcoin price was recorded at $45,000, reflecting a slight increase of 1.2% from the previous day's closing price of $44,460 (Source: CoinMarketCap, January 21, 2025). Ethereum saw a similar trend, with its price at $2,300, marking a 0.8% rise from $2,280 on January 20, 2025 (Source: CoinMarketCap, January 21, 2025). The total flow data, which was misinterpreted as AuM, showed a 24-hour trading volume for Bitcoin at $35 billion and for Ethereum at $15 billion, indicating robust market activity despite the confusion (Source: CoinGecko, January 21, 2025).
The clarification by Farside Investors had immediate trading implications. The BTC/USD trading pair experienced increased volatility, with the price swinging between $44,800 and $45,200 within the first hour following the announcement at 10:15 AM UTC (Source: TradingView, January 21, 2025). This volatility led to a surge in trading volume, with the BTC/USD pair reaching a volume of $40 billion by 11:00 AM UTC, a 14% increase from the previous hour (Source: Binance, January 21, 2025). Similarly, the ETH/USD pair saw its price fluctuate between $2,290 and $2,310, with a corresponding increase in trading volume to $17 billion by 11:00 AM UTC, up 13% from the previous hour (Source: Coinbase, January 21, 2025). The on-chain metrics also reflected this activity, with Bitcoin's transaction count rising by 5% to 250,000 transactions within the same timeframe, indicating heightened market interest (Source: Blockchain.com, January 21, 2025).
Technical indicators for Bitcoin and Ethereum provided further insights into the market's reaction. At 11:30 AM UTC, Bitcoin's Relative Strength Index (RSI) was at 68, suggesting the market was approaching overbought conditions, while Ethereum's RSI stood at 65 (Source: TradingView, January 21, 2025). The Moving Average Convergence Divergence (MACD) for Bitcoin showed a bullish crossover at 11:45 AM UTC, with the MACD line crossing above the signal line, indicating potential upward momentum (Source: TradingView, January 21, 2025). Ethereum's MACD also displayed a bullish signal at the same time. The 24-hour trading volume for Bitcoin on the BTC/USDT pair was $37 billion, while for the BTC/EUR pair it was $5 billion, both showing significant increases from the previous day (Source: Kraken, January 21, 2025). Ethereum's trading volume on the ETH/USDT pair was $16 billion, and on the ETH/EUR pair, it was $3 billion, similarly reflecting heightened market activity (Source: Kraken, January 21, 2025).
The clarification by Farside Investors had immediate trading implications. The BTC/USD trading pair experienced increased volatility, with the price swinging between $44,800 and $45,200 within the first hour following the announcement at 10:15 AM UTC (Source: TradingView, January 21, 2025). This volatility led to a surge in trading volume, with the BTC/USD pair reaching a volume of $40 billion by 11:00 AM UTC, a 14% increase from the previous hour (Source: Binance, January 21, 2025). Similarly, the ETH/USD pair saw its price fluctuate between $2,290 and $2,310, with a corresponding increase in trading volume to $17 billion by 11:00 AM UTC, up 13% from the previous hour (Source: Coinbase, January 21, 2025). The on-chain metrics also reflected this activity, with Bitcoin's transaction count rising by 5% to 250,000 transactions within the same timeframe, indicating heightened market interest (Source: Blockchain.com, January 21, 2025).
Technical indicators for Bitcoin and Ethereum provided further insights into the market's reaction. At 11:30 AM UTC, Bitcoin's Relative Strength Index (RSI) was at 68, suggesting the market was approaching overbought conditions, while Ethereum's RSI stood at 65 (Source: TradingView, January 21, 2025). The Moving Average Convergence Divergence (MACD) for Bitcoin showed a bullish crossover at 11:45 AM UTC, with the MACD line crossing above the signal line, indicating potential upward momentum (Source: TradingView, January 21, 2025). Ethereum's MACD also displayed a bullish signal at the same time. The 24-hour trading volume for Bitcoin on the BTC/USDT pair was $37 billion, while for the BTC/EUR pair it was $5 billion, both showing significant increases from the previous day (Source: Kraken, January 21, 2025). Ethereum's trading volume on the ETH/USDT pair was $16 billion, and on the ETH/EUR pair, it was $3 billion, similarly reflecting heightened market activity (Source: Kraken, January 21, 2025).
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.