Coin Metrics forecast higher Binance Bitcoin (BTC) exchange-supply readings from a planned update to its list of exchange addresses, a measurement change that would not mean the exchange had gained more coins.
The Nov. 4 notice projected higher numbers in some hourly readings that day and daily readings on Nov. 5. Coin Metrics highlighted Binance’s Bitcoin supply measures in BTC and U.S. dollars but did not specify how much either might rise. The projected change reflected broader coverage of exchange wallets rather than a change in actual holdings.
Exchange supply is a snapshot of coins held in wallets identified with an exchange at the end of a reporting period. It covers both hot and cold wallets. If an address has not yet been identified, its coins can be missing from the recorded balance even while the exchange holds them.
Adding that address can raise the reported balance without a new transfer into Binance. The dollar-denominated measure can move for another reason: It reflects Bitcoin’s price as well as the amount of BTC counted. A higher dollar reading alone therefore does not establish that the exchange received more Bitcoin.
Deposit data capture transfers into known exchange wallets during a specified interval. They show that assets arrived at identified addresses, but they do not show whether the owner placed an order or completed a sale. A balance at the end of an interval and the flow of coins during it answer different questions.
Executed-trade records provide a separate measure of transactions that took place, including their timing, price and amount. Where the taker side is known, a sell-taker trade means an incoming sell order matched a resting bid. Comparing those trades with deposits and balances requires using the same observation period.
For historical comparisons, Coin Metrics also provides point-in-time exchange measures that preserve the addresses known during each interval. A wallet discovered later is not treated as though it had already been identified. Reading balances, deposits and trades over matching periods can help distinguish a change in wallet coverage from a change in market activity.
The Bureau of Labor Statistics (BLS) is scheduled to release October’s Consumer Price Index on Tuesday, Nov. 10, at 8:30 a.m. ET (13:30 UTC).
Enna Lee
Enna Lee reports on investing and digital-asset markets for TokenPost. Send corrections or tips to [email protected].
