34 terms
Crypto market data glossary
Plain definitions for ETF, derivatives and on-chain terms, with the common misreadings.
A
- Assets under management (AUM)
- Assets under management (AUM) is the total market value of the assets that a fund holds on behalf of its investors.
B
- Basis
- Basis is the price difference between a futures contract and the spot price of the same asset.
C
- Circulating supply
- Circulating supply is the number of tokens that are available to trade on the market today.
- Coinbase Premium Index
- The Coinbase Premium Index measures the price gap between Bitcoin on Coinbase in US dollars and Bitcoin on a global exchange in a dollar-linked pair.
- Cost basis
- Cost basis is the average price at which a group of holders acquired their coins.
- Creation and redemption
- Creation and redemption is the process in which authorized participants add or remove ETF shares by delivering or receiving the underlying asset or cash.
D
- Drawdown
- Drawdown is the percentage decline of an asset from its previous peak to a later low.
E
- Exchange netflow
- Exchange netflow is the difference between the coins that flow into exchange wallets and the coins that flow out in a given period.
F
- Fully diluted valuation (FDV)
- Fully diluted valuation (FDV) is the token price multiplied by the maximum supply, as if every token already circulated.
- Funding rate
- The funding rate is a periodic payment between long and short traders in perpetual futures that keeps the contract price close to spot.
G
- Gamma exposure (GEX)
- Gamma exposure (GEX) estimates how much options dealers must buy or sell in the underlying asset to stay hedged when the price moves.
H
- Hash rate
- Hash rate is the total computing power that miners use to secure a proof-of-work network, measured in hashes per second.
L
- Leverage
- Leverage lets a trader open a position larger than the trader’s own capital by borrowing or by using margin.
- Liquidation
- A liquidation is the forced closing of a leveraged position when the margin no longer covers the loss.
- Liquidation heatmap
- A liquidation heatmap is a chart that estimates the price levels where leveraged positions would be liquidated.
- Long position
- A long position is a trade that gains value when the price of the asset rises and loses value when the price falls.
- Long-term holder (LTH)
- A long-term holder (LTH) is an investor whose coins have not moved on-chain for more than 155 days, in the definition used by NinjaTools.
M
- Max pain
- Max pain is the option strike price at which the total payout to all option holders at expiry would be the lowest.
- Mayer Multiple
- The Mayer Multiple is the Bitcoin price divided by its 200-day moving average.
- Mint and burn
- Minting creates new tokens and adds them to the supply. Burning destroys tokens and removes them from the supply.
- MVRV
- MVRV is the ratio of market value to realized value. It compares the current price with the average price at which coins last moved.
N
- NUPL
- NUPL (net unrealized profit/loss) is the difference between market value and realized value, divided by market value.
O
- Open interest
- Open interest is the total number or value of derivative contracts that are open and not yet settled or closed.
P
- Perpetual futures
- Perpetual futures are derivative contracts with no expiry date. A funding rate keeps their price close to the spot price.
- Pi Cycle Top
- The Pi Cycle Top indicator compares the 111-day moving average of Bitcoin with twice its 350-day moving average.
- Puell Multiple
- The Puell Multiple is the daily value of newly issued bitcoin in US dollars divided by the 365-day moving average of that value.
- Put/call ratio
- The put/call ratio divides the volume or open interest of put options by that of call options.
R
- Realized price
- Realized price is the average price at which all coins in a supply last moved on-chain. It is the realized value divided by the coin supply.
S
- Short position
- A short position is a trade that gains value when the price of the asset falls and loses value when the price rises.
- Short-term holder (STH)
- A short-term holder (STH) is an investor whose coins moved on-chain within the last 155 days, in the definition used by NinjaTools.
- SOPR
- SOPR (spent output profit ratio) is the price at which coins are sold divided by the price at which they were acquired.
- Spot Bitcoin ETF
- A spot Bitcoin ETF is an exchange-traded fund that holds actual bitcoin and tracks its price.
- Stablecoin
- A stablecoin is a crypto token designed to keep a steady value, usually one US dollar, by holding reserves or by using other mechanisms.
T
- Token unlock
- A token unlock is the release of previously locked tokens, which makes them available to trade and adds to the circulating supply.