Is money quietly moving?
“A certain exchange’s daily options report: BTC open interest notional value: $32.071 billion (up 0.8%), DVOL: 39.0, ETH open interest notional value…”
After the news comes out, I ask three questions about money:
1. Which way are aggressive buyers and sellers leaning?
2. Could trading volume for $BTC (24-hour volume: $869 million) increase significantly?
3. Have any large amounts moved on-chain to exchanges?
Only when all three point in the same direction can the news be considered validated by the money flows; otherwise, it’s probably just noise.
The more buzz a piece of news generates, the more reason there is to wait and see where the money goes.
“A certain exchange’s daily options report: BTC open interest notional value: $32.071 billion (up 0.8%), DVOL: 39.0, ETH open interest notional value…”
After the news comes out, I ask three questions about money:
1. Which way are aggressive buyers and sellers leaning?
2. Could trading volume for $BTC (24-hour volume: $869 million) increase significantly?
3. Have any large amounts moved on-chain to exchanges?
Only when all three point in the same direction can the news be considered validated by the money flows; otherwise, it’s probably just noise.
The more buzz a piece of news generates, the more reason there is to wait and see where the money goes.