On-chain data shows the Bitcoin Interexchange Flow Pulse is about to see a trend reversal, here’s what it may mean for the crypto’s price. Bitcoin Interexchange Flow Pulse Is Crossing Over Its 90-Day MA As per CryptoQuant’s on-chain year-end dashboard release, the trend shifts in this metric have historically occurred with phase changes in the market. The “Interexchange Flow Pulse” is an indicator that measures the 1-year cumulative net flows between Coinbase and derivative exchanges. When the value of this metric rises, it means investors are transferring more coins from spot to derivative exchanges right now, and are hence willing to take up more risk. On the other hand, low values suggest not much capital is flowing into the derivative exchanges at the moment. Now, here is a chart that shows the trend in the Bitcoin Interexchange Flow Pulse, as well as its 90-day moving average (MA), over the last few years: Looks like the value of the metric may be beginning to turn around | Source: CryptoQuant As you can see in the above graph, a pattern seems to have historically followed with the Bitcoin Interexchange Flow Pulse during bull-bear trends in the price of the crypto. Whenever the coin has observed a bullish period, the indicator has seen a constant climb and has stayed above its 90-day MA. Related Reading: Litecoin Bullish Signal: Shark And Whale Addresses Hit 2-Year High The reason behind this is that investors are generally willing to take more risk during bull markets, and hence send increasingly large amounts to derivative exchanges for setting up leverage positions. However, whenever the metric has reversed its direction and crossed below the 90-day MA, a top formation has taken place in the price of BTC, and the bullish trend has ended. In the bear markets that have followed such periods, the Interexchange Flow Pulse has usually continued to go down and has remained below its 3-month average. Once again, why this happens is simple; bear markets are when the average holder is unwilling to take any risks, and hence capital flow into derivatives dries up. This trend in the indicator continues until the turning point once again takes place, where the price forms its bottom and the metric starts moving back up the opposite way (crossing above its 90-day MA in the process). Related Reading: Bitcoin Might Be Going Through Its “Most Challenging” Cycle Based On This Metric In the current bear market as well, the Bitcoin Interexchange Flow Pulse has consistently moved down while staying under its 90-day MA. Most recently, however, the decline seems to have stopped, and now the indicator is retesting its long-term average. If the historical pattern is anything to go by, a successful crossover and reversal in the Interexchange Flow Pulse’s trajectory here would mean the bear bottom is in for the current cycle, and a slow transition towards a bull market could follow. BTC Price At the time of writing, Bitcoin’s price floats around $16,600, down 1% in the last week. The value of the crypto seems to have declined over the last couple of days | Source: BTCUSD on TradingView Featured image from Maxim Hopman on Unsplash.com, charts from TradingView.com, CryptoQuant.com

Crypto investment firm Midas is shutting down its DeFi platform after suffering irrevocable losses in the Terra, Celsius, and FTX crashes.  $63M Deficit Forces Midas Shutdown In the aftermath of the heavy losses incurred in the series of crashes in the industry this year, Midas Investments is closing down its DeFi-based yields platform. The news broke when Midas CEO and founder Iakov “Trevor” Levin wrote and published a blog announcing the news on Tuesday, claiming a deficit of $63 million.  Levin wrote,  “I’m Trevor, the CEO of Midas Investments, and I am writing to you today with a heavy heart to announce that the Midas platform is closing down. Based on this situation and current CeFi market conditions, we have reached the difficult decision to close the platform.” The blog also detailed the heavy losses suffered by the platform in 2022, as Levin claimed that the Midas platform suffered a cumulative loss of $50 million. According to the founder, the platform needs to be shut down since the respective crashes of the Celsius and FTX ecosystems wiped out over 60% of all assets under the management of the Midas portfolio and created a significant asset deficit.  CeDeFi Shows Way Forward Furthermore, Levin also outlined the way forward for Midas, claiming that the company will be focusing on its CeDeFi or centralized decentralized finance initiatives in order to create fully transparent, on-chain investment options He wrote,  “Over the past eight months, our team has been focused on identifying and capitalizing on opportunities to balance our assets and liabilities. This included launching CeDeFi strategies, seeking fundraising, and exploring opportunities with DeFi protocols. Despite these efforts, the extensive withdrawals due to the insolvency of Celcius and FTX, coupled with reduced yield opportunities on the market, made it impossible for us to cover daily payouts to users due to the assets deficit.” Balance Adjustments With MIDAS Tokens The company has already started its process of shutting down the DeFi platform. On Tuesday, all deposits, swaps, and withdrawals were disabled. The team is working on calculating and adjusting account balances by deducting 55% from user balances held in BTC, ETH, and stablecoins. The remaining amount will be compensated with MIDAS tokens that users will be able to exchange for the new tokens of the upcoming project.  Levin wrote,  “The goal of the new project is to create a win-win situation by connecting competing protocols with liquidity and offering a simplified yield to a range of DeFi and CeFi audiences.” Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice. 

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