Bitcoin's Unprecedented Liquidity Can Explain Its Price Volatility
As the world’s most liquid asset, bitcoin’s price volatility in times of economic crisis likely reflects its independence, not lack of faith.In March 2020, major stock market indexes saw some of the worst price collapses in decades, as markets confronted the realities of the COVID-19 pandemic. Bitcoin was no exception to these economic strains. Having traded as high as $10,000 in mid-February 2020, bitcoin’s price collapsed to below $4,000 by mid-March, including a 30% drop in a day. Fear caused a flight to cash in across the board, from domestic to international traders, large-cap to....
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As Bitcoin soars toward a new all-time high and has recaptured the interest of the world of finance, a sizable supply of liquidity is building on exchanges, not in BTC, but in stablecoins. The rising supply alongside surging crypto valuations suggests that the recent rally is “liquidity-driven,” according to one cryptocurrency quantitative analyst. That liquidity as it continues to stack up on exchanges everywhere could soon bring the most “unprecedented buying pressure in history” to […]
The Bitcoin price has made an easy turn off the bottom of the advancing wave and is proceeding higher amidst optimistic trade today. An IMF special report, entitled the "Global Financial Stability Report", was published today and warns of potential shocks and increased volatility in global markets. Links to Sections: IMF Warning: Low Liquidity and Volatility. Global Economy. Bitcoin Price Analysis. Comments. IMF Warning: Low Liquidity and Volatility. The extended period of monetary accommodation and the accompanying search for yield are leading to credit mispricing and asset price....
Etoro, a trading and investing platform, has warned its customers to brace for possible limitations on their buy orders this coming weekend. The company says it might be forced to take this and other steps if the anticipated and unprecedented surge in demand for cryptos occurs. Unprecedented Demand and Limited Liquidity The Israeli company’s warning follows its curb of European investors’ “ability to trade cryptocurrencies on margin” in the past week. The company had reportedly made this decision in “response to soaring risks in the market.”....
In an environment of unprecedented credit expansion, bitcoin is the only asset that is 100% monetary premium, 0% anything else.
The Bitcoin Price is set to rally above $400 during Thursday's trading session after consolidating below it for two days. The outlook for Bitcoin is increasingly bullish as more and more evidence of a long-term advance manifests on the price chart. Lack of Liquidity Making Headlines. Global Economy. Bitcoin Price Analysis. Summary. Comments. Lack of Liquidity Making Headlines. This was a pukage. People were putting in market order to sell on the open - 'Just get me out' - without thinking. - Brian Stutland of Equity Armor Investments. CNBC reports on the "unprecedented" lack of liquidity....