According to the Bitfinex Alpha report, the message from last week’s data is that inflation is weakening, but the process is slow, and the Fed has not yet eased monetary policy.
The Fed will continue to raise interest rates in the future. It is expected to raise interest rates by 50 basis points in February next year and 25 basis points in March. In the crypto market, Bitfinex Alpha’s analysis of volatility indicators and historical data suggests that year-end price volatility is likely due to reduced trading volumes and the continued sideways movement of the BTC Volatility Index over large time periods.
In the past week, more than 70,000 bitcoins flowed into whale wallets, but as more funds moved out of exchanges, it did not mean bullish on BTC prices, but was seen as a crisis of confidence in centralized exchanges.
This pattern confirms a trend that Bitfinex Alpha has seen for a year, but has intensified after the FTX crash. 2022 will be the year with the largest decline in BTC and ETH balances on exchanges in history.