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Bitcoin Volatility Is Up, Liquidity Stagnant

Liquidity providers are not rushing in. To furthermore market makers’ enthusiasm for bitcoin, we turn to network data: the aggregate balances of exchange wallets, as a percentage of bitcoin’s compute supply. This measure of exchanges’ bitcoin flows shows some responsiveness to volatility. Year-to-date highs were set in modern May and early July, when volatility was on the rise and peaking, respectively.

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