Following Bitcoin's largest liquidation event, ETF flows weakened alongside price with cumulative netflow turning negative by 2.3K BTC this week 📉💰. Contrasts with prior capitulation phases where outflows accelerated - current moderation suggests hesitation over panic 🔄📊.
Sustained weakness or delayed inflow recovery would signal demand fragility, undermining key rally driver ⚡️⚠️👀
Sustained weakness or delayed inflow recovery would signal demand fragility, undermining key rally driver ⚡️⚠️👀
Trading Crypto Compass
#BITCOIN Daily TF Update: #BITCOIN failed resistance break on Daily TF with strong rejection strengthening zone 📉💪. Price flipped resistance suggesting potential upside but overall market structure remains bearish 🔄⚠️. Mixed signals requiring caution - bearish…
Trading Crypto Compass
#TOTAL Update: #TOTAL suffered strong market crash with shallow support zone break, now slowly recovering and attempting flip 📉🔄. Weekly TF holding zone suggesting potential upward move and market stabilization 💪📊. Watch for successful flip confirmation…
#educational Post
What Is a Yield Curve?
The term "yield curve" refers to the graphical representation of the relationship between yields and maturities in fixed income markets.
The yield curve is a graphic depiction of the rates of return that investors can expect from various maturities of fixed-income securities, such as bonds and treasury bills. The shape of the curve is determined by the level of interest rates that prevail in the economy. Lower interest rates are associated with increasing levels of longer-term debt instruments. Higher interest rates are associated with decreasing levels of longer-term debt instruments.
It is a significant financial instrument used by investors to predict the economy’s direction. It compares the interest rates of short, medium, and long-term government bonds.
The yield curve represents the relationship between bond yields, expressed as an interest rate per year, and the maturity dates.
Normal Yield Curve vs Inverted Yield Curve
A normal yield curve is upward sloping, meaning that longer-term maturities have higher interest rates than shorter-term ones. This phenomenon is known as "normal" because it usually represents an economic environment in which people are willing to invest for the long term at greater risk in exchange for higher returns.
When the curve is inverted, or when short-term interest rates are higher than long-term ones, it indicates a negative economic outlook. An inverted yield curve can precede a recession.
Because of its close association with potential economic changes, the yield curve has important implications for investors and other market participants. For example, if the yield curve flattens out or becomes more horizontal, it indicates that investors are comfortable holding less risky assets for longer periods. This could signal a weaker economy as consumers begin to spend less and save more ahead of anticipated economic uncertainty.
The yield curve is used to gauge whether an economic activity is likely to accelerate or decelerate in the near future. Economists view an upward sloping yield curve as a sign that growth is likely to pick up while a downward sloping curve is taken as a sign that growth is expected to slow.
When the yield curve changes shape, it can signal that specific segments of the economy are about to outperform or underperform their peers. For example, if short-term interest rates rise relative to longer-term rates, it could be a sign that inflationary pressures are building and that a higher rate of inflation might not be far off. If long-term rates rise relative to short-term rates, it could be a sign that growth expectations are rising faster than inflationary expectations and that higher short-term interest rates might be on the horizon.
How to Measure Yield Curves
The spread between the rates of ten-year treasuries and two-year treasuries is one of the most often used techniques of determining whether the yield curve is flattened. This spread is charted by the Federal Reserve, and it is one of their most widely downloaded data series. It is updated on most business days.
One of the most accurate leading predictors of a recession in the coming year is the 10-year to two-year Treasury spread. Since 1976, when the Fed began publishing this data, it has precisely forecasted every reported recession in the United States.
What Is a Yield Curve?
The term "yield curve" refers to the graphical representation of the relationship between yields and maturities in fixed income markets.
The yield curve is a graphic depiction of the rates of return that investors can expect from various maturities of fixed-income securities, such as bonds and treasury bills. The shape of the curve is determined by the level of interest rates that prevail in the economy. Lower interest rates are associated with increasing levels of longer-term debt instruments. Higher interest rates are associated with decreasing levels of longer-term debt instruments.
It is a significant financial instrument used by investors to predict the economy’s direction. It compares the interest rates of short, medium, and long-term government bonds.
The yield curve represents the relationship between bond yields, expressed as an interest rate per year, and the maturity dates.
Normal Yield Curve vs Inverted Yield Curve
A normal yield curve is upward sloping, meaning that longer-term maturities have higher interest rates than shorter-term ones. This phenomenon is known as "normal" because it usually represents an economic environment in which people are willing to invest for the long term at greater risk in exchange for higher returns.
When the curve is inverted, or when short-term interest rates are higher than long-term ones, it indicates a negative economic outlook. An inverted yield curve can precede a recession.
Because of its close association with potential economic changes, the yield curve has important implications for investors and other market participants. For example, if the yield curve flattens out or becomes more horizontal, it indicates that investors are comfortable holding less risky assets for longer periods. This could signal a weaker economy as consumers begin to spend less and save more ahead of anticipated economic uncertainty.
The yield curve is used to gauge whether an economic activity is likely to accelerate or decelerate in the near future. Economists view an upward sloping yield curve as a sign that growth is likely to pick up while a downward sloping curve is taken as a sign that growth is expected to slow.
When the yield curve changes shape, it can signal that specific segments of the economy are about to outperform or underperform their peers. For example, if short-term interest rates rise relative to longer-term rates, it could be a sign that inflationary pressures are building and that a higher rate of inflation might not be far off. If long-term rates rise relative to short-term rates, it could be a sign that growth expectations are rising faster than inflationary expectations and that higher short-term interest rates might be on the horizon.
How to Measure Yield Curves
The spread between the rates of ten-year treasuries and two-year treasuries is one of the most often used techniques of determining whether the yield curve is flattened. This spread is charted by the Federal Reserve, and it is one of their most widely downloaded data series. It is updated on most business days.
One of the most accurate leading predictors of a recession in the coming year is the 10-year to two-year Treasury spread. Since 1976, when the Fed began publishing this data, it has precisely forecasted every reported recession in the United States.
Trading Crypto Compass
#DXY Update: #DXY stuck in consolidation moving back and forth with minimal directional movement this week affecting broader financial markets 📊🔄. Next week expecting breakout that could trigger decisive market direction 💪⚡️. Watch for range break to determine…
Trading Crypto Compass
#ETH Update: #ETH retraced fully and attempting resistance break now 📈💪. Close above $4200 could trigger move to $4400, taking out old highs and liquidity run 🚀🎯. Watch for decisive close above resistance for continuation confirmation ⚡️👀📊
Trading Crypto Compass
#BITCOIN Weekly TF Update: #BITCOIN moved up last week but retraced fully back to support on Weekly TF 📉🔄. Still rejecting area but candle close pending - market sideways requiring HTF breakout on key areas 💪📊. Wait for weekly close and HTF confirmation…
Trading Crypto Compass
#US30 Update: #US30 broke range and retested previous ATH, now pushing to new ALL TIME HIGHS with previous positions running strong profits 🚀💰📈. Try scaling additional positions on H4 dips for better entries 💪✅. Strong momentum supporting continued upside…
#Educational Post
What are storage miners?
Storage mining is a type of cryptocurrency mining that allows miners to receive rewards for storing data on their personal servers or devices. One of the main concepts of storage mining is that miners have to dedicate a certain amount of storage space to become eligible to be a node of the blockchain network.
One of the most notable cryptocurrencies that depends on storage mining in its operations is Filecoin. The Filecoin blockchain relies on the storage capacity of its miners in order to select eligible nodes. These nodes then serve as transaction verifiers and miners of new blocks which are added to the chain.
Entrusting the node-selection process to a storage-based consensus mechanism is somewhat experimental in the cryptocurrency industry. Most popular blockchains rely on either proof-of-work (PoW) or proof-of-stake (PoS) consensus mechanisms. However, blockchains like Filecoin utilize storage power as a measure for node eligibility. Node validators are selected based on the amount of storage power they can offer to the network. In return, nodes or storage miners receive mining rewards. In the case of Filecoin, storage miners receive FIL tokens for successful block creation.
The storage that miners dedicate to the network is utilized by users of the Filecoin blockchain and system. This is why the consensus mechanism requires all approved notes to be able to prove that they have the storage power needed and that they have an updated copy of the whole system on their servers at all times.
Interestingly, storage miners can choose whether they would like to dedicate cloud storage or hardware storage. This makes it incredibly easy for storage miners to acquire additional storage power and move up in node rankings.
Storage-based consensus mechanisms are rarely utilized in the blockchain industry, however, Filecoin is proof that this system can be successful. Not only that, the highly customizable requirements regarding the type of storage power requested by the network allow storage miners a significant amount of flexibility. This flexibility in node requirements is not usually present in more established consensus mechanisms.
What are storage miners?
Storage mining is a type of cryptocurrency mining that allows miners to receive rewards for storing data on their personal servers or devices. One of the main concepts of storage mining is that miners have to dedicate a certain amount of storage space to become eligible to be a node of the blockchain network.
One of the most notable cryptocurrencies that depends on storage mining in its operations is Filecoin. The Filecoin blockchain relies on the storage capacity of its miners in order to select eligible nodes. These nodes then serve as transaction verifiers and miners of new blocks which are added to the chain.
Entrusting the node-selection process to a storage-based consensus mechanism is somewhat experimental in the cryptocurrency industry. Most popular blockchains rely on either proof-of-work (PoW) or proof-of-stake (PoS) consensus mechanisms. However, blockchains like Filecoin utilize storage power as a measure for node eligibility. Node validators are selected based on the amount of storage power they can offer to the network. In return, nodes or storage miners receive mining rewards. In the case of Filecoin, storage miners receive FIL tokens for successful block creation.
The storage that miners dedicate to the network is utilized by users of the Filecoin blockchain and system. This is why the consensus mechanism requires all approved notes to be able to prove that they have the storage power needed and that they have an updated copy of the whole system on their servers at all times.
Interestingly, storage miners can choose whether they would like to dedicate cloud storage or hardware storage. This makes it incredibly easy for storage miners to acquire additional storage power and move up in node rankings.
Storage-based consensus mechanisms are rarely utilized in the blockchain industry, however, Filecoin is proof that this system can be successful. Not only that, the highly customizable requirements regarding the type of storage power requested by the network allow storage miners a significant amount of flexibility. This flexibility in node requirements is not usually present in more established consensus mechanisms.
Trading Crypto Compass
#BTC Update: #BTC failed to close above $112,000 and dropped back to support area again 📉🔄. Same pattern repeating - need decisive breakout or news catalyst to drive direction 💪📊. Wait for clear signals before positioning ⚡️🎯👀
Trading Crypto Compass
#GOLD Update: #GOLD broke range cleanly with candle close below zone, continuing drop with shallow retracement 📉💪. Next support at $3950 area could be reversal zone 🎯📊. Watch level closely - take buys on rejection or LTF confirmations ⚡️👀🔄
Bitcoin futures open interest suffered one of largest single-day contractions on record, erasing $10B+ in positions 💥📉. Magnitude comparable to May 2021 liquidation and FTX 2022 unwind showing major derivatives flush-out 🔴💪.
Steep decline reflects widespread forced deleveraging via margin calls across longs and shorts. With price holding above key on-chain support, driven by leverage compression vs broad spot selling - structural reset rather than full capitulation ⚡️📊👀
Steep decline reflects widespread forced deleveraging via margin calls across longs and shorts. With price holding above key on-chain support, driven by leverage compression vs broad spot selling - structural reset rather than full capitulation ⚡️📊👀
Trading Crypto Compass
#BTC Update: #BTC reacted from support then dropped deeper inside zone but Daily TF still holding showing bulls fighting 💪📉. Trendline break concerning for structure 🔄⚠️. Eyes on price action until confirmation - critical levels being tested ⚡️🎯👀