Exchange BTC reserves below 2M coins indicate strong accumulation by long-term holders (HODLers).
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Token velocity measures how frequently tokens change hands, reflecting liquidity, speculation, and adoption. High velocity may indicate active trading, short-term speculation, or low holding incentives, while low velocity suggests long-term holding and ecosystem trust. Analysts track velocity alongside supply, staking, and market activity to assess demand-supply dynamics. Understanding velocity helps researchers anticipate price trends, potential sell-offs, and investor behavior. It also informs on the effectiveness of incentive programs or tokenomics design. For long-term analysis, combining velocity with adoption and network activity provides a comprehensive view of ecosystem health and sustainability.
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Open interest (OI) in futures markets reveals how much capital is committed to derivatives. Rising OI with rising prices indicates new money entering bullish positions, while rising OI with falling prices suggests aggressive shorting. Sharp OI drops can signal mass liquidations or position closures, often after volatility spikes. Tracking OI alongside funding rates improves interpretation, helping traders distinguish between healthy trend continuation and overleveraged markets vulnerable to reversals.
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