After a difficult 2022 year, we made a good start to 2023. bitcoin experienced an increase of approximately 70%.
BTCDespite a tremendous rise in , liquidity still remains low.
BloombergThis will likely lead to more volatility for Bitcoin in April as liquidity remains low.
Blockchain firm Kaiko analyst Conor Ryder He said about the Bitcoin price:
“This is more of an indication of the reluctance of institutional investors to offer liquidity in this area.
Because many crypto companies do not want to be caught in the middle of a war between US regulators and exchanges.”
Another person evaluating the liquidity shortage in Bitcoin is the head of research at digital asset firm 3iQ. Mark Connors it happened.
Connors told Bloomberg:
“While Bitcoin has rallied since the beginning of 2023, trading volumes and liquidity in the crypto market have retreated significantly compared to when Bitcoin dropped nearly 38% to $28,000 last year.
Because institutional investors got scared and backed off after the crises and regulatory pressure.
Now all eyes are on retail investors, who are an integral part of the crypto system.”
Finally Fiona Cincotta, senior analyst at City Index, bitcoin made the assessment.
“A more volatile market inevitably awaits us in the face of the low trading volume and liquidity of Bitcoin.
The sharp drop in volumes means there may be high volatility in BTC. So hold on tight, there may be more big fluctuations.
Also, falling volumes, lessening banking sector concerns, and crypto regulation coming into focus suggest that investors’ appetite for Bitcoin’s highs is waning.”
*Not investment advice.
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