Latest news about Bitcoin and all cryptocurrencies. Your daily crypto news habit.
IntoTheBlock launches eleven new sophisticated indicators, being the first part of 30+ new indicators coming to IntoTheBlock this quarter.
At IntoTheBlock (ITB) we are excited to launch eleven new indicators to the Analytics platform. The released metrics dive into crypto-assets from several distinct points of view, but share a common purpose: to offer sophisticated insights allowing users to better understand what is happening behind crypto markets.
The new indicators are:
- Active Addresses by Profitability
- Large Holders Netflow to Exchange Netflow Ratio
- Address Birth-Death Ratio
- Activity-to-Fee Ratio
- New adoption Rate
- Asset Beta
- Tail Risk
- Skewness
- Staking Age
- Staking Services Market Share
- Staking Flows
In this piece we will dive into five standout indicators from this release and how they can be used in action to help users achieve their crypto goals.
Active Addresses by Profitability
One of the themes behind this release was to create unique insights by combining many of the most relevant metrics for ITB users. A perfect example of this is the Active Addresses by Profitability indicators.
These indicators use IntoTheBlock’s trademark In/Out of the Money to classify whether active addresses on a given day are profiting on their positions or not.
ITB’s new financial indicators
By monitoring the profitability of active addresses we can better understand the profile of the players moving the market.
Looking at the Historical Active Addresses by Profitability, we can see that historically when ~50% of addresses transacting are losing money on their Bitcoin positions, it has been near the bottom. This could be due to capitulations from large holders that become forced sellers into the depths of the bear market, as we witnessed in the second half of 2022.
Activity to Fee Ratio
Another interesting metric combining two data points to provide a differentiated look into crypto markets is the Activity to Fee indicator.
We frequently state that a crypto-asset’s fees is one of the most important metrics to analyze its demand. By combining this with the number of active addresses on a given day, we obtain the average willingness to pay to use a crypto-asset.
ITB’s new addresses stats indicators
In the graph above we can see how the Activity to Fee ratio for Bitcoin grew sharply in early May as meme tokens drove on-chain activity to yearly highs. This shows how during this speculative period, users were on average willing to spend significantly more to use Bitcoin than just a few weeks prior.
Tail Risk & Skewness
From a more statistical perspective, we introduce the Tail Risk & Skewness indicator. This indicator models the historical price movements of a given asset under the selected time period. Below we can see what that price distribution looks like for Bitcoin over the past year.
ITB’s new addresses stats indicators
Over the past 12 months Bitcoin has averaged a daily return of 0.11%. We also see that price has been distributed through a 95% confidence interval between -5% and +5%. This shows that price action outside of this range is uncommon and should be studied in more detail as they are two standard deviations (two sigma) away from normal activity.
Large Holders Netflow to Exchange Netflow Ratio
Going back to the theme of combining indicators, the Large Holders Netflow to Exchange Netflow Ratio provides clarity into two relevant ITB indicators.
One common criticism of the Large Holders set of indicators is that it includes exchanges addresses as they often are amongst the greatest holders for most crypto-assets. So by combining the net change of large holders activity with the netflows of exchanges, we obtain a clearer signal of what is happening in the market.
ITB’s new exchange flows indicator
Through the graph above it becomes evident that there were two days of particularly strong accumulation from large holders: in early May and in mid-June. Therefore, this shows that large holders were indeed buying aggressively in these periods and that it was not just exchanges’ activity skewing the data.
ETH Staking Flows
Finally, we also took this as an opportunity to update our ETH staking indicators. After the successful launch of the Shapella fork, this enabled withdrawals from staking and greater interest to dive into what is happening within this space.
Through the ETH Staking Flows indicator we show the big picture for the current state of Ethereum staking.
ITB’s new ETH staking indicators
Through the ETH staking flows we can see how withdrawals began on April 12, 2023. This led the total amount of ETH staked to drop by about 5% prior to climbing back to new highs a month later. Since then deposits have accelerated while withdrawals have eased, leading the amount of ETH staked to reach over 21 million for the first time this week.
Overall, we are very excited about the latest release to the IntoTheBlock Market Intelligence platform. The five indicators covered through this piece are just the tip of the iceberg; make sure to check out the full set of metrics through a pro free trial or subscription. More to come soon.
IntoTheBlock Market Intelligence Update was originally published in IntoTheBlock on Medium, where people are continuing the conversation by highlighting and responding to this story.
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.