This Week's Episode Summary

The bitcoin price recovers to its largest level of on-chain support of just under $55k, suggesting that cost curve analysis helps us understand the medium-term price floor even if news drives the price in the short term.

Exchanges are the primary venues where prices are determined and exchange inflows are closely watched to understand how much cryptocurrency is about to be sold. The majority of inflows originate from other exchanges, 81% for bitcoin and 61% for Ethereum, illustrating the opportunity that exists for those who provide liquidity across exchanges.

There are on average 132k on-chain bitcoin users of exchanges per day versus 23k for Ethereum. Ethereum not only has a smaller number of on-chain exchange users than bitcoin, but the top ten users deposit 53% of Ethereum inflows, compared to 22% for bitcoin. Ethereum inflows have become more concentrated since DeFi and decentralized exchanges became established, suggesting these markets are more dominated by a few insiders than centralized exchanges are.

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Music by https://www.tylerbeckwithmusic.com/ (Tyler Beckwith)