SPOT ETF Flows vs On-Chain Accumulation



The recent price appreciation is not arbitrary. Rather, as shown above, it is a function of SPOT ETF inflows coupled with real on-chain accumulation activity. The former is driving demand, while later is hinting at deeper dynamics at play.

In summary, while ETF inflows are resulting in robust inflows as shown by the above chart, they are reflecting as rallies that soon reverse because they are not accompanied by on-chain accumulation activity.

Market movement:

ETF flow spikes push the price up quickly through institutional liquidity. However, if there is no strong on-chain HODLing, profits will be quickly taken out, which indicates that there is no actual "buy and hold" going on.

What to watch:
– Net Spot ETF AUM increase

Active address growth vs. dormant supply changes –Large transactions to long-term accounts

Trading logic:
Instead of scaling out on price spikes, I’m scaling in on probable on-chain zones of accumulation, i.e., not on price action alone. And by accumulating on ETF flows as well as wallet accumulation, the risk involved is minimized while making the trades smart as well as emotional.#CelebratingNewYearOnGateSquare $BTC
BTC-0,86%
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