Analyzing Cryptocurrency Market Events with On-Chain Data

Market events are periods of rapid change to the amounts of cryptocurrency flowing into exchanges. Such events typically suggest a change in traders’ sentiment and often coincide with major cryptocurrency price changes. In this Chainalysis Markets case study, we investigate the causes of a market event that occurred from late June through mid-July of 2019, during which Bitcoin’s price dropped significantly. Using a combination of on-chain exchange inflow data and analysis of long vs. short positions on Bitcoin’s price in the cryptocurrency derivatives market, we reconstruct how this market event happened and find evidence of possible price manipulation. Download the full case study to learn how on-chain data can deepen our understanding of cryptocurrency market movements.