Weekly Crypto Data Report EP2: Rainbow Chart, Supply Shock, and Institutional Inflows
Attention all bears⚠️ Institutional money has entered the market. I repeat, institutional money has entered the market...
Every Thursday, we sift through massive amounts of on-chain data and institutional reports to highlight the most critical metrics and charts, then distill them into an easy-to-digest analysis—exclusively (hopefully) for the "Weekly Crypto Data Report" series! If you find this series helpful, don't forget to ✅ like and ✅ subscribe to get notified first next time!
We’re just data storytellers, simplifying complex insights for broader understanding. All original sources are listed below for deeper exploration—feel free to dive in!
Key Takeaways:
- Exchange Bitcoin Reserves: Declining supply on exchanges signals potential accumulation.
- Bitcoin Rainbow Chart: Historical price bands hint at long-term valuation trends.
- Ethereum Underperformance: ETH lags behind BTC in recent rallies.
- DeFi TVL Growth: Cross-chain liquidity shifts reveal emerging trends.
- Korean Retail Frenzy: Local trading volumes impact altcoin movements.
- Institutional On-Ramps: Grayscale, CoinShares, and others report surging inflows.
Exchange Bitcoin Supply Hits Multi-Year Lows
👉 Glassnode data shows a 12% drop in BTC held on exchanges since Q1, suggesting strong hodling behavior.
Bitcoin Rainbow Chart: Are We Still Early?
The Blockchain Center’s Rainbow Chart places BTC in the "Accumulate" zone, historically a buying opportunity before parabolic phases.
Ethereum’s Lagging Momentum
Despite network upgrades, ETH’s BTC-denominated chart shows relative weakness—raising questions about altseason timing.
DeFi TVLs: The Race for Liquidity
DeFi Llama data highlights Ethereum’s dominance but notes Solana and Avalanche gaining share.
Korean Retail Traders: The "Kimchi Premium" Effect
Kaiko’s report reveals local exchanges often trade at premiums during bull runs, influencing global prices.
Institutional Inflows: The Big Money Moves
According to CoinShares, $1.2B flowed into crypto ETPs last month, with one altcoin (hint: check the title) seeing repeated accumulation.
FAQs
Q: Why does declining exchange supply matter?
A: Less liquid BTC means higher price volatility—often upward—if demand rises.
Q: Is the "rainbow chart" reliable?
A: It’s a heuristic model based on past cycles, not a crystal ball, but useful for macro trends.
Q: When will altcoins catch up to Bitcoin?
A: Typically after BTC stabilizes; watch ETH/BTC ratios and DeFi TVLs for signals.
Q: How do institutions affect retail traders?
A: Their inflows can reduce sell-side pressure, but also dominate rallies, leaving retail chasing pumps.
👉 Pro Tip: Always DYOR—data doesn’t lie, but narratives can shift fast. Stay ahead with real-time alerts.
Data beats dogma. See you next week!
**Notes**:
- Removed promotional links/advertisements.
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