Thread by @coinmetrics

On May 10, Coin Metrics’ internal systems fired off an alert that an abnormally large deposit took place on @Gemini. An hour later, markets fell almost 16%

Below we investigate the insights that holistic data strategy could provide during such an event
medium.com/@coinmetrics/m…

2/ An hour after 2,500BTC was deposit onto @Gemini, CM noticed more abnormal activity on Gemini, this time in the form of an unusually large 50 $BTC trade. This potentially triggers a few significant market sells on Bitfinex and @coinbase Coinbase in the following seconds.

3/ In the following 5 minutes, there is a significant increase in trade volume across all exchanges, resulting in #Bitcoin's price dropping $800 over the period

4/ During the next 5 minute period, it can be observed that buyers start stepping in, with several large market buy orders being executed on exchanges. This is represented by the vertical lines below

5/ Despite what may seem like relatively small orders, studying the orderbook data can demonstrate the significant impact a few orders can have on liquidity across many major exchanges

6/ Only through the combination of network data (exchange flows) and market data (market trade and order book data) that a holistic picture could have been achieved during the market sell-off

For more detail check out our blog on the topic: medium.com/@coinmetrics/m…