Market Maker Inventory Flows
Market Maker Flows
Monitor inventory movements from major liquidity providers to identify potential market impact
Market makers like Wintermute are among the most active liquidity providers in crypto. When they move large amounts of BTC or ETH to exchange deposit addresses, it often signals:
- Upcoming sell pressure or inventory rebalancing
- Preparation for volatility suppression
- Collateral positioning for derivatives
The Signal: When a market maker sends $500M+ to an exchange hot wallet, they're preparing to either sell it or use it as collateral to suppress price volatility.
Blockchain RPC nodes or APIs (Etherscan, Alchemy, Moralis) to fetch transaction logs
Curate proprietary list of known market maker addresses (Big 5: Wintermute, Jump, Cumberland, GSR, Amber Group)
WebSocket listener triggers when watchlist addresses send >$1M to exchange deposit addresses
Better watchlist curation than competitors, providing signals without manual monitoring