Bitcoin’s steady performance attributed to low liquidity and minimal spot volume

Quick Take

  • Bitcoin has maintained a stable price below $30,000 for the past few weeks.
  • Many reasons this has occurred; whales and long-term holders are offloading Bitcoin while other cohorts continue accumulating.
  • Derivatives are fairly muted and with a neutral bias, while risk-on sentiment disappears.
  • Most importantly, liquidity continues to suffer after banking collapses with SVB, Signature, and Silvergate Bank.
  • While spot volume is at one of the lowest levels for almost 15 months, which shows little appetite for investors.
  • However, this could change with the jobs report coming out later and CPI next week.
Liquidity: (Source: Kaiko)
Liquidity: (Source: Kaiko)
Spot Volume: (Source: Swissblock)
Spot Volume: (Source: Swissblock)

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