According to analysts, increasing liquidity in the Bitcoin and cryptocurrency markets shows that the price rise is sustainable.
Making statements to The Block, Bitfinex analysts said that there is an increasing trend in the cryptocurrency market. liquidity to investors gave assurance that they would be able to find buyers for the sale of their assets and therefore rise in price He stated that it could be permanent.
Analysts say increased liquidity will also increase investment reduces the risk And for cryptocurrencies He said it showed that demand was increasing.
On the other hand, David Lawant, head of research at corporate cryptocurrency platform FalconX, made similar statements. Lawant on Bitcoin liquidity increase cryptocurrencies for positive a signal He stated that it was.
Lawant also noted that the first liquidity glut in this rally It’s encouraging He emphasized that the price increase is sustainable.
But by YouHodler the exact opposite An explanation came. The following statements were made in the statement:
We have noticed an increase in liquidity in the cryptocurrency market, but at the moment we are not sure whether this is the beginning of a new bullish period or a correction of a decline that has been going on for several years.