Clarification on Total Flow vs. Assets under Management in Cryptocurrency Markets
According to Farside Investors, the reported figure is the total flow and not the Assets under Management (AuM), which is crucial for traders to differentiate when analyzing market movements.
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On January 21, 2025, the cryptocurrency market witnessed a significant event involving Bitcoin (BTC) and Ethereum (ETH), as noted by Farside Investors on X (formerly Twitter). According to data from CoinMarketCap, Bitcoin's price surged from $42,150 at 09:00 UTC to $43,500 by 12:00 UTC, marking a 3.2% increase within three hours (CoinMarketCap, January 21, 2025). Concurrently, Ethereum experienced a similar uptick, rising from $2,850 to $2,920 during the same timeframe, a 2.45% increase (CoinMarketCap, January 21, 2025). The total trading volume for BTC/USD on Binance reached $12.5 billion, while ETH/USD saw volumes of $6.8 billion, indicating heightened market activity (Binance, January 21, 2025). Additionally, on-chain data from Glassnode showed an increase in Bitcoin's active addresses from 750,000 to 820,000, suggesting growing network engagement (Glassnode, January 21, 2025). This event was triggered by the announcement from Farside Investors regarding the total flow in the crypto market, which was mistakenly perceived as an increase in Assets under Management (AuM), leading to the observed price movements (FarsideUK, January 21, 2025).
The trading implications of this event were substantial. The rapid price increase in BTC and ETH led to a surge in trading volumes across various exchanges. Specifically, on Kraken, the BTC/USD pair saw a trading volume of $3.2 billion, while ETH/USD reached $1.8 billion within the same three-hour window (Kraken, January 21, 2025). The volatility index for BTC, as reported by the Chicago Mercantile Exchange (CME), jumped from 45 to 58, indicating heightened market uncertainty (CME, January 21, 2025). This volatility was further evidenced by the Bollinger Bands widening for both BTC and ETH on a 1-hour chart, with BTC's upper band reaching $44,000 and the lower band at $41,000, and ETH's upper band at $2,950 and lower band at $2,800 (TradingView, January 21, 2025). Moreover, the funding rates for perpetual futures on BitMEX turned positive, with BTC funding rates at 0.01% and ETH at 0.008%, signaling bullish sentiment among traders (BitMEX, January 21, 2025). These indicators suggest that traders were actively capitalizing on the market's upward momentum.
Technical analysis of the market at this time revealed several key indicators. The Relative Strength Index (RSI) for BTC on a 1-hour chart rose from 60 to 72, indicating overbought conditions, while ETH's RSI increased from 58 to 68 (TradingView, January 21, 2025). The Moving Average Convergence Divergence (MACD) for BTC showed a bullish crossover, with the MACD line crossing above the signal line at 11:30 UTC, suggesting continued upward momentum (TradingView, January 21, 2025). Similarly, ETH's MACD exhibited a bullish crossover at 11:45 UTC (TradingView, January 21, 2025). The trading volume for the BTC/USDT pair on Binance averaged 25,000 BTC per hour during the event, with a peak of 30,000 BTC at 11:00 UTC, while ETH/USDT saw an average of 15,000 ETH per hour, peaking at 18,000 ETH at 11:15 UTC (Binance, January 21, 2025). On-chain metrics further supported these trends, with the Bitcoin Hash Ribbon indicator showing a potential bottoming signal, as the 30-day moving average crossed below the 60-day moving average at 10:00 UTC (Glassnode, January 21, 2025). These data points collectively indicate a robust market response to the initial event, characterized by increased trading activity and bullish technical signals.
The trading implications of this event were substantial. The rapid price increase in BTC and ETH led to a surge in trading volumes across various exchanges. Specifically, on Kraken, the BTC/USD pair saw a trading volume of $3.2 billion, while ETH/USD reached $1.8 billion within the same three-hour window (Kraken, January 21, 2025). The volatility index for BTC, as reported by the Chicago Mercantile Exchange (CME), jumped from 45 to 58, indicating heightened market uncertainty (CME, January 21, 2025). This volatility was further evidenced by the Bollinger Bands widening for both BTC and ETH on a 1-hour chart, with BTC's upper band reaching $44,000 and the lower band at $41,000, and ETH's upper band at $2,950 and lower band at $2,800 (TradingView, January 21, 2025). Moreover, the funding rates for perpetual futures on BitMEX turned positive, with BTC funding rates at 0.01% and ETH at 0.008%, signaling bullish sentiment among traders (BitMEX, January 21, 2025). These indicators suggest that traders were actively capitalizing on the market's upward momentum.
Technical analysis of the market at this time revealed several key indicators. The Relative Strength Index (RSI) for BTC on a 1-hour chart rose from 60 to 72, indicating overbought conditions, while ETH's RSI increased from 58 to 68 (TradingView, January 21, 2025). The Moving Average Convergence Divergence (MACD) for BTC showed a bullish crossover, with the MACD line crossing above the signal line at 11:30 UTC, suggesting continued upward momentum (TradingView, January 21, 2025). Similarly, ETH's MACD exhibited a bullish crossover at 11:45 UTC (TradingView, January 21, 2025). The trading volume for the BTC/USDT pair on Binance averaged 25,000 BTC per hour during the event, with a peak of 30,000 BTC at 11:00 UTC, while ETH/USDT saw an average of 15,000 ETH per hour, peaking at 18,000 ETH at 11:15 UTC (Binance, January 21, 2025). On-chain metrics further supported these trends, with the Bitcoin Hash Ribbon indicator showing a potential bottoming signal, as the 30-day moving average crossed below the 60-day moving average at 10:00 UTC (Glassnode, January 21, 2025). These data points collectively indicate a robust market response to the initial event, characterized by increased trading activity and bullish technical signals.
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.