On-сhain Weekly Report №49 (Week 49 2021)

Ivan Maltsev
4 min readDec 10, 2021

Market had a huge volatility and high losses for traders who work with futures. Bitcoin price felt more than $9k in a single day in some exchanges, that leaded to closed over $5.4B worth of futures contracts. We can see a weaknees across traditional and crypto markets.

  • Federal Reserve Chairman Jerome Powell indicated on previous Tuesday that the central bank could step up the removal of its efforts to boost the economy as it battles escalating inflation pressures.
  • More than 20 countries reported the new omicron Covid variant emerge. Experts say it’s likely that the variant, first identified in South Africa last week, had already been circulating for some time.

According to Binance (BTC/USDT pair), Bitcoin opened the week at $57,212 and rallied to a high of $59,220, before falling to a low of $42,048 on Saturday. During the previous week Bitcoin price has lost maximum more than 28.9%.

BTC reserve(USD) divided by all stablecoins reserves held by all exchanges. The number has grown during a previous week. It means an increase in buying.

The ratio of BTC leaving all miners wallets to its 1-year moving average. Values above 2 indicate most miners are selling. Our value is below 0. Means that miners are not selling and possibly are buying.

The total amount of BTC held by All Funds has fallen during a previous week. It means that funds have shorten their positions in BTC.

Sum of forced market orders to exit leveraged long positions in BTC quantity caused by price variability on all exchanges All Symbol trading pair. The amount of long liquidations in exchanges was not to high comparing to activity in the 1 and 2 quarters this year.

The amount of all stablecoins’ held in all exchanges’ wallets has fallen. I suppose that exchanges used them to buy Bitcoin and other crypto.

Within hours, Futures Open Interest had been flushed of $5.4 billion in contracts, a reduction if -24.5% in total value from the space.

Options Volume has increased more than >250% since July, now regularly settling over $1 billion daily.

The last week’s event set a recent high for Realized Losses on-chain. The sum of coins spent in loss for December 4 totalled $3 billion. Coming into Saturday, previous high marks were set on May 19 and June 25, with losses of $4.5B and $3.8B respectively.

Bitcoin holders are not tranfering huge amounts of BTC to exchanges. They aren’t behaving as they have in prior moments of weakness, hinting at an underlying confidence, and largely confirming weakness was more heavily influenced by derivative markets rather than spot selling.

Crypto Fear & Greed Index has failed below 20 that means an extreme fear was in the market. Possibly it was a good opportunity to buy.

The last week’s sell-off was driven by liquidations in the futures market and news that collapsed all markets. Big players who are spending coins appear to be those who bought the top and now they are realising losses.

Sources: https://insights.glassnode.com/, https://studio.glassnode.com/metrics?a=BTC&m=addresses.ActiveCount https://alternative.me/crypto/fear-and-greed-index/, https://cryptoquant.com/, https://www.tradingview.com/,