Quant Explains How US Stock Market Volumes Influence Bitcoin Price

A quant has explained how there is a connection between the recent trends in the US stock market volumes and the Bitcoin price. TradFi Depth Oscillator Has Hit A Low And Is Now Turning Back Up As explained by an analyst in a CryptoQuant post, the volume depth in traditional finance markets has been low recently. The “TradFi volume” is a measure of the total amount of transactions that buyers and sellers are making on the US stock market. There is a concept called “market depth,” which is the ability of any market to take in large orders without impacting the price of the commodity much. Generally, the more orders there are in a market, or simply, the higher its volume, the stronger the depth of the asset. However, something important is that these orders should be spread evenly within the market, otherwise the depth wouldn’t be as great. Related Reading: Bitcoin Bullish Signal: Exchange Outflows Spike Up Using an oscillator, the cyclical trend in the depth of any asset can be noticed. Here is a chart that shows how the US stock market volume depth oscillator has changed its values during the last few months: The value of the metric seems to have been turning around in recent days | Source: CryptoQuant As you can see in the above graph, the quant has marked the relevant zones of trend between the Bitcoin price and the TradFi volume depth oscillator. It looks like whenever the indicator has tra...