The Daily Dive #098 - HODL Waves And Realized HODL Ratio
Correction for The Daily Dive #097
In The Daily Dive #097, we covered the latest developments in the bitcoin derivatives market. In the article, we shared data on bitcoin-margined derivatives increasingly dramatically. While bitcoin-margined open interest has been increasing as of late, the large increase was due to the inclusion of a new contract offered on previously bitcoin-only BitMEX, which now supports USDT (tether) deposits and offers a perpetual swap contract that is collateralized with USDT (XBT/USDT).
On the first day of trading (November 11, 2021), the XBT/USDT perpetual swap contract had over $2 billion in open interest. This open interest was mislabeled by the Glassnode API as being a bitcoin-margined derivative, which was the cause for the large spike.
Realized Cap HODL Waves
HODL Waves is a visualization that displays the supply of bitcoin that last moved within a certain time period. Realized Cap HODL Waves takes the HODL Wave metric and weights the UTXOs in each age band by their realized price.
When looking at bitcoin that have been moved within the last six months weighted by their realized price over the history of the network, a clear trend emerges during market cycle tops and the ensuing bear market.
The “under six months Realized HODL Bands” metric is currently trending downward, which is yet another sign that the proverbial spring continues to compress.