Five Useful Free Indices in a Falling Cryptocurrency Market


The year 2022 was a roller coaster for the cryptocurrency market. In the past year, investors have witnessed the rise and fall of STEPN, as well as the death spiral of UST and the Merge, a historic event on Ethereum. Soon after, FTX went bankrupt.

For cryptocurrency investors, this sudden black swan event was an additional offense. Just when we thought the worst was over and things would look up for crypto in the new year, DCG’s outstanding debts were revealed shortly after 2023 kicked off, and the crypto giant has become an uninsured grenade. .

That said, the crisis also presented opportunities. In the past year, investors have had several great opportunities to buy in a bear market. At the same time, as the bear market deepened, many indices became invalid, while some have proven useful. Today, we are going to review some of the best indices in 2022.

1. US ICC & PCE.

Before going into the details, we must clarify that all investors are subject to being influenced by the macroscopic environment, and the financial action taken by the United States represents one of the most important factors affecting the world economy. In addition, the CPI and the PCE directly reflect the opinion of investors in the macro financial markets and the future movements of the Federal Reserve regarding interest rate hikes. Of course, in addition to CPI and PCE, we must also follow market forecasts to predict macro market trends and quickly adjust our investment strategies.

Expected percentage, inter-monthly and annual variations of the CPI and the PCE

Source: Cleveland fed

If you focus on the long-term prospects of your investments, then you must be able to look to the future, which will allow you to make the right decisions now.

2.Nasdaq 100.

If you compare the Nasdaq 100 with the evolution of the price of Bitcoin in 2022, you will realize that the curves of both share remarkable similarities. Although their correlation gradually decreased in the second half of the year, they are close when it comes to major market corrections. This is because cryptocurrencies are still in their infancy and are a small sector in terms of market capitalization, which means they cannot escape the impact of the US stock market. Also, after institutional investors made a fortune in the last bull market, the capital structure of the entire cryptocurrency market is increasingly similar to that of the Nasdaq 100, meaning the two will be more correlated going forward.

However, it is also clear that the cryptocurrency market responded to fluctuations more violently than the Nasdaq 100, indicating that most cryptocurrency investments are made by speculators. Furthermore, in the cryptocurrency market, investor sentiment is subject to significant changes, with lasting repercussions for prices.

Nasdaq 100 and the price of BTC

Source: Tradingview

In addition to the macro indices, there are also several useful indices that focus on the cryptocurrency market itself. Let’s take a look.

1. Futures Margin Rates and Long/Short Ratio.

The combination of both statistics allows us to track the actual Long/Short ratio of cryptocurrencies, which provides references for decision making. Meanwhile, when the margin rate of the same cryptocurrency differs between exchanges, we can also make profit through arbitrage.

Margin Types for Futures

Source: Coinglass

BTC Long/Short Ratio

Source: Coinglass

2. BTC/ETH: Net exchange flow.

During the current bear market, BTC has remained the number 1 cryptocurrency in terms of market capitalization. Also, ETH has also secured its position as the second largest crypto. As such, when accessing market movements, we need to check the fund flows related to BTC and ETH.

BTC Exchange Netflow

Source: CryptoQuant

3. Bitcoin Rainbow Chart and Ahr999.

If you plan to make long-term investments instead of looking for immediate gains, Bitcoin Rainbow Chart and Ahr999 are great options. In particular, after the market movements in 2022, the initial version of the Bitcoin Rainbow Chart has lost its validity, which caused the appearance of a new version based on new algorithms: Rainbow Chart V2.

Source: Blockchaincenter

On the other hand, if you are a staunch supporter of BTC and an investor, you must have heard of Ahr999, an index that can help you not get distracted by market swings and make fixed and rational investments. However, Ahr999 could also make you anxious in a prolonged crypto bear.

source: Coinglass

So, these are one of the favorite indices in 2022. It should be noted that all of them are free, and you can trust these incredible indices when making investments. Apart from the ones we have mentioned, the monthly delivery of BTC and ETH options and detailed DeFi statistics are also useful indicators, which we will not delve into in this article.

Having entered all those indices, we still have to choose a trustworthy platform when it comes to investing. CoinEx is a favorite crypto exchange in 2022. Founded in 2017, the exchange is a subsidiary of ViaBTC Group and has never suffered from any security breach since its inception.

As a global crypto exchange, CoinEx excels in localization. Available in 15 languages, it has created channels on all official social networks for users in each market. As for the products, CoinEx offers simple and hassle-free operations. In addition, CoinEx also provides a wide range of premium services, spanning spot trading, futures trading, margin trading, crypto finance, AMM and CoinEx Dock, to create an easy-to-use, secure and efficient cryptocurrency trading environment. efficient. Click the link below to try CoinEx if you are interested.

Disclaimer: This article does not offer investment advice, and all information mentioned herein is for reference only. You should not rely on the information provided herein to make any investment decision, and you will be fully responsible for your own investment decisions.

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