• Advertise
  • Submit a Press Release
  • About Us
NewsBTC
Bitcoin & cryptocurrency news
Crypto.com Logo
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
    • Research
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Learn
    • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
    • Categories
  • Events
  • Play GamesTry
  • Play Casino GamesTry
  • Play FinanceTry
  • Claim 7 BTCTry
No Result
View All Result
Breaking News: Bitfinex And Crypto Bank OrionX Forged Partnership To Broaden Presence In Latin America
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
    • Research
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Learn
    • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
    • Categories
  • Events
  • Play GamesTry
  • Play Casino GamesTry
  • Play FinanceTry
  • Claim 7 BTCTry
No Result
View All Result
Bitcoin News
No Result
View All Result
Breaking News: Bitfinex And Crypto Bank OrionX Forged Partnership To Broaden Presence In Latin America
Bitcoin

Bitcoin Price Surge Threatened By Liquidity Crunch – What To Expect

Christian Encila by Christian Encila
2 months ago
in Cryptocurrency Market News
Reading Time: 3 mins read

Bitcoin market liquidity is currently a major point of concern within the cryptocurrency sphere. The lack of depth in the market has led to significant price slippage when large orders are executed, resulting in erratic price swings that can overwhelm even the most experienced traders.

The cryptocurrency market is currently facing a liquidity crisis triggered by the shutdown of Silvergate’s SEN and Signature’s Signet network in early March. Despite a rebound in Bitcoin’s price since its March slump, which reached a peak of around $28,900, the initial drop has raised concerns among market participants.

Lack of liquidity in an asset can cause significant market inefficiencies, resulting in severe price swings that can deter experienced investors from executing trades.

Bitcoin Poised For Consolidation Phase

According to CoinMarketCap data, Bitcoin has seen a slight increase of 0.77% on Monday and is currently valued at $27,849. Despite its inability to reach the $30,000 mark thus far, market trends suggest that Bitcoin may be gearing up for a phase of consolidation. 

A consolidation phase is a period of time where the market’s volatility decreases, and prices remain relatively stable. It typically follows a significant uptrend or downtrend, allowing the asset to take a breather before continuing its trend.

For Bitcoin, a consolidation phase may signal a time of market indecision. However, it could also be a positive sign for investors, as it may lead to the formation of a base for future growth.

Related Reading: Bitcoin Price Barrels Past $28,000 – Can BTC Keep Pushing This Week?

It’s worth noting that while a consolidation phase may be a positive sign for Bitcoin’s long-term growth, it’s not always guaranteed to lead to an upward trend. Market conditions can change quickly, and unexpected events can disrupt even the most stable of assets. 

Bitcoin Liquidity Hits 10-Month Low

Despite Bitcoin’s impressive performance this year, investors may be concerned about the lack of liquidity in cryptocurrency markets. 

Conor Ryder from Kaiko told Bloomberg about a decline in the measure of Bitcoin’s ease of buying and selling, which has reached a low point not seen in 10 months.

The calculation of this metric involves evaluating the offers to buy and sell in the market maker’s order books, limited to a 2% deviation from the cryptocurrency’s current price on either side.

BTCUSD currently remains in the $27K region on the daily chart at TradingView.com
Related Reading: Dogecoin (DOGE) Makes Slight 6% Climb This Week – Here’s Why

This liquidity decline is attributed to firms that purchase and sell cryptocurrency losing access to dollar-payment systems, resulting in a drying up of liquidity in the market.

The fate of Bitcoin has left investors in the cryptocurrency industry on the edge of their seats. 

Despite the market’s resilience in the past, the current liquidity crisis presents a formidable challenge to its stability. The future of Bitcoin’s rally hangs in the balance, and it remains to be seen whether it will persevere or succumb to the crisis.

-Featured image from PublishOx

Tags: bitcoinbtccryptoliquidity
Tweet123Share196ShareSend
Christian Encila

Christian Encila

Christian is a former journalist and editor, as well as a layout design consultant, who previously held leadership positions at Sun.Star News Philippines and Ang Peryodiko News, a local daily in Manitoba, Canada. Alongside his passion for writing, he is an avid fan of cryptocurrency and works tirelessly throughout the week. When he's not on his computer, you can find him tinkering with his old motorbike as a grease monkey, or lounging on the patio hammock while pondering about artificial intelligence and whether he'll ever understand his cat's thoughts and calmness.

Related Posts

EOS

Bearish Sentiment Hits EOS As Bulls Lose Control, What Lies Ahead?

6 hours ago
RUGME

Get Rich Or Get Rugged? RUGME’s Unique Liquidity Mechanism Sparks Controversy

8 hours ago
Injective

Bullish Run for Injective (INJ): Will the Momentum Continue?

9 hours ago
Bitcoin (BTC)

No All-Time High For Bitcoin In 2023, Former BitMEX Head Arthur Hayes Predicts

10 hours ago
Bitcoin casino – Top Bitcoin casino bonuses

Bitcoin casino – Top Bitcoin casino bonuses

12 hours ago
Bitcoin

Bitcoin Shows Recovery: Did This Historical Line Act As Support Again?

13 hours ago

Premium Partners

Play Finance

Top Casinos

BitStarz

BitStarz

Review · Visit
Punt Casino

Punt Casino

Review · Visit
Trust Dice

Trust Dice

Review · Visit
mBit

mBit

Review · Visit

Sportsbooks

1xBit

1xBit

Review · Visit

Press Releases

  • Bware Labs Launches $INFRA Token, making high API...

    8 hours ago
  • Is InQubeta the Best Utility Crypto of 2023? Huge Growth...

    11 hours ago
  • Coinbase launches campaign to educate public on blockchain...

    12 hours ago
  • Utility Coins like Avorak AI will always outperform memes...

    12 hours ago
  • Expect Tremendous Returns for DigiToads (TOADS), Near...

    12 hours ago

About Us

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

Cryptocurrency news

  • Bitcoin
  • Ethereum
  • Ripple
  • Chainlink
  • Cardano
  • EOS
  • Tezos

Technical Analysis

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Ripple (XRP)
  • Chainlink (LINK)
  • Cardano (ADA)
  • Tezos (XTZ)

Company

  • Advertising
  • Comments Policy
  • Privacy Center
  • Sitemap
  • About Us
  • Contact

© 2022 NewsBTC. All Rights Reserved.

  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
    • Research
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Learn
    • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
    • Categories
  • Events
  • Play Games
  • Play Casino Games
  • Play Finance
  • Claim 7 BTC

© 2022 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.