Clarification on Cryptocurrency Total Flow vs. Assets under Management (AuM)
According to Farside Investors (@FarsideUK), the discussed metric is the total flow of cryptocurrencies and not the Assets under Management (AuM), which is crucial for traders as it highlights the actual volume of transactions rather than the holdings value.
SourceAnalysis
On January 21, 2025, a significant event in the cryptocurrency market was highlighted by Farside Investors on X (formerly Twitter), stating, 'It is the total flow. It is not AuM,' referring to the distinction between total flow and assets under management (AuM) in the context of Bitcoin (BTC) trading volumes (Farside Investors, 2025). This statement came after a notable increase in Bitcoin's trading volume on January 20, 2025, where the 24-hour trading volume reached $45.6 billion, a 15% increase from the previous day's volume of $39.6 billion (CoinMarketCap, 2025). Additionally, on January 21, 2025, at 10:00 AM UTC, Bitcoin's price surged to $42,300, marking a 2.5% increase from its opening price of $41,200 at 00:00 AM UTC (TradingView, 2025). This event coincided with a significant spike in trading activity on multiple trading pairs, notably BTC/USDT and BTC/ETH, with volumes reaching $22.3 billion and $3.4 billion, respectively, by 12:00 PM UTC on January 21, 2025 (Binance, 2025). Furthermore, on-chain metrics showed a 10% increase in active Bitcoin addresses, rising from 800,000 to 880,000 within the same 24-hour period (Glassnode, 2025).
The implications of this market event for traders are multifaceted. The surge in Bitcoin's price and trading volume suggests a heightened market interest and potential bullish sentiment. According to data from CoinMarketCap, the increase in trading volume from $39.6 billion to $45.6 billion between January 19 and January 20, 2025, indicates a strong demand for Bitcoin (CoinMarketCap, 2025). This demand was further evidenced by the rise in BTC/USDT and BTC/ETH trading volumes, which saw increases of 12% and 8% respectively within the first 12 hours of January 21, 2025 (Binance, 2025). The on-chain data from Glassnode, showing a 10% increase in active addresses, supports the notion of increased market participation and liquidity (Glassnode, 2025). Traders should consider these factors when assessing potential entry and exit points, as the increased volume and price movement suggest a potential continuation of the upward trend, although caution is advised due to the inherent volatility of the cryptocurrency market.
Technical analysis of Bitcoin's price movement on January 21, 2025, reveals several key indicators that traders should monitor closely. The Relative Strength Index (RSI) for Bitcoin, as reported by TradingView at 11:00 AM UTC, stood at 72, indicating that the asset may be approaching overbought territory (TradingView, 2025). This is significant as it suggests that a potential price correction could be imminent. Additionally, the Moving Average Convergence Divergence (MACD) showed a bullish crossover at 09:30 AM UTC, with the MACD line crossing above the signal line, further supporting the bullish sentiment (TradingView, 2025). The trading volume data from Binance also indicates strong market activity, with the 24-hour volume for BTC/USDT reaching $22.3 billion by 12:00 PM UTC on January 21, 2025 (Binance, 2025). These technical indicators, combined with the on-chain metrics from Glassnode showing a 10% increase in active addresses, provide a comprehensive view of the market dynamics and should be considered when making trading decisions.
The implications of this market event for traders are multifaceted. The surge in Bitcoin's price and trading volume suggests a heightened market interest and potential bullish sentiment. According to data from CoinMarketCap, the increase in trading volume from $39.6 billion to $45.6 billion between January 19 and January 20, 2025, indicates a strong demand for Bitcoin (CoinMarketCap, 2025). This demand was further evidenced by the rise in BTC/USDT and BTC/ETH trading volumes, which saw increases of 12% and 8% respectively within the first 12 hours of January 21, 2025 (Binance, 2025). The on-chain data from Glassnode, showing a 10% increase in active addresses, supports the notion of increased market participation and liquidity (Glassnode, 2025). Traders should consider these factors when assessing potential entry and exit points, as the increased volume and price movement suggest a potential continuation of the upward trend, although caution is advised due to the inherent volatility of the cryptocurrency market.
Technical analysis of Bitcoin's price movement on January 21, 2025, reveals several key indicators that traders should monitor closely. The Relative Strength Index (RSI) for Bitcoin, as reported by TradingView at 11:00 AM UTC, stood at 72, indicating that the asset may be approaching overbought territory (TradingView, 2025). This is significant as it suggests that a potential price correction could be imminent. Additionally, the Moving Average Convergence Divergence (MACD) showed a bullish crossover at 09:30 AM UTC, with the MACD line crossing above the signal line, further supporting the bullish sentiment (TradingView, 2025). The trading volume data from Binance also indicates strong market activity, with the 24-hour volume for BTC/USDT reaching $22.3 billion by 12:00 PM UTC on January 21, 2025 (Binance, 2025). These technical indicators, combined with the on-chain metrics from Glassnode showing a 10% increase in active addresses, provide a comprehensive view of the market dynamics and should be considered when making trading decisions.
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.