Hold On Tight, The Situation Will Worse: Experts Warn For Bitcoin!

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bitcoin and the cryptocurrency market managed to stand strong against the US banking crisis last month. Judging by the price performance, BTC managed to record a 70% increase in 2023.

However, Bitcoin will likely show more price volatility in April as liquidity dwindles. Analytical firm Kaiko noted that investors are likely to pay more on trades due to slippage or the difference between the expected price and the execution price. This difficulty in trading looks like clear signs that liquidity is worsening and prices are likely to fluctuate later this month.

Increasing regulatory pressure in the US and the closure of several crypto-friendly banks continues to put pressure on the market. Kaiko’s Conor Ryder drew attention to the following words in his statements to Bloomberg.

This is more an indication of the reluctance to offer liquidity in the institutional sense. Not many crypto firms want to be caught in the middle of a war between US regulators and exchanges.

bitcoin price Even though it recovered strongly in early 2023, trading volumes and liquidity fell significantly. While there have been multiple cases of scams over the past year, retail investors are still skeptical of the market. Mark Connors, head of research at digital asset management firm 3iQ, told Bloomberg.

Tourist investors certainly no longer exist. If you’re in this business, you need to understand that the volatility is there, you can’t know where it’s going from day to day, but you know the trajectory, adoption, etc. you understand.

Bitcoin Spot Transaction Volumes

Transaction volumes on Binance and Coinbase exchanges, on the other hand, were above $6 billion in spot trade, with 65 million monthly user visits on Binance as of the end of March. Similarly, Coinbase saw around $1.3 billion in trading volume and 33 million monthly visits. These two exchanges have come under fire from US regulators over the past two weeks. Fiona Cincotta, senior financial markets analyst at City Index, said:

Bitcoin trading volumes have collapsed, “which inevitably creates a more volatile market. The sharp drop in volumes means it is easier for large orders to move BTC prices. So hold on tight, there may be stronger ripples. The falling volumes indicate that the appetite for BTC has waned at its recent highs.

On the other hand, the large number of Bitcoins that have been moved out of the stock market recently also attract attention. According to CryptoQuant, about 46,000 BTC from the exchange in the last 10 days. Left.

You can follow the current price action here.


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