Bitcoin rallies above $69,000 as retail traders apply pressure to short positions and aim to generate a lasting bullish trend change.
Liquidity News
In the cryptocurrency market, liquidity fundamentally refers to how simple it is to exchange one coin for another (or government-issued fiat currencies). Order books, similar to those seen on a stock market, are one method to achieve liquidity. Here, buyers and sellers of assets enter orders, detailing the price and quantity they are willing to pay for the asset they wish to acquire or sell. The asset’s price is then determined by an exchange, such as a centralized exchange, matching buy and sell orders.
A market maker, an agent who is always prepared to purchase and sell specific assets, can be used as an alternate method of supplying liquidity to the market. For example, decentralized finance (DeFi) has centralized exchanges that serve as market makers, like Binance (a company). However, a decentralized counterpart that replaces a centralized market maker is one of the intriguing features of DeFi. For instance, tokens can be swapped using a decentralized exchange (DEX) like Uniswap rather than a centralized exchange.
Furthermore, to establish a liquid DeFi system, liquidity pools are important. In order to have enough funds in a liquidity pool, liquidity providers (LPs) are needed, who put a large sum of money into the pool. Because liquidity providers help the protocol provide liquidity, they receive a reward in return. This reward is generated by the transaction fees, which are paid by the pool’s users.
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- Market Analysis
Bitcoin’s post-CPI rally above $69,000 may help complete the V-shaped recovery chart pattern and also confirm that $60,000 was the sell-off bottom.
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Despite the deposit and withdrawal halt, BlockFills customers can still place trades on the platform to open and close positions.
1825 - Market Analysis
Bitcoin’s rejection at $70,000 and the large liquidity void below leave $60,000 vulnerable, a move analysts see as likely in the coming days.
3447 - How to
Bitcoin’s recent moves track liquidity stress more than Fed rate cuts. Here’s how balance sheet policy and cash flows shape crypto markets.
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The number of traders expecting a rate cut at the March Federal Open Market Committee meeting rose following fears of a hawkish Fed nominee.
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The new facility allows institutions to redeem tokenized real-world assets into stablecoins instantly, addressing a key liquidity bottleneck in onchain markets.
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Spot Bitcoin ETFs drew $562 million in inflows Monday, partially offsetting $1.5 billion outflows last week, while Ether ETFs remained in the red.
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Warsh’s nomination as the new Fed chair has ignited US liquidity drought concerns, but his interest rate policy may hold the silver lining for risk asset recovery, according to market analysts.
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Bitcoin’s decline is mirroring SaaS stocks, proving that it is unlikely a crypto-specific narrative is driving the recent selloff, one analyst argues.
4723 - Market Analysis
Bitcoin short positions continued to pile up as BTC price dropped near $81,000, potentially providing the liquidation fuel for a revenge rally back above $90,000.
2900 - Explained
Proof-of-reserves shows assets at a single point in time, but it does not prove solvency, liquidity or sound governance. Here is what PoR misses and what real trust looks like.
- Market Analysis
Futures market liquidations, a sharp sell-off in US stocks and limited progress on talks to fund the US government were taking a toll on Bitcoin price Thursday. Is $80,000 the next stop for BTC?
3312 - Market Analysis
Bitcoin price breakouts fail to hold due to insufficient bid-side liquidity. Glassnode analysis identifies the key metrics that are likely to mark the next phase of BTC price expansion.
2330 - Market Analysis
Bitcoin retreated from intraday highs after the US Fed left interest rates unchanged, but futures market data suggests traders may attempt to seize the short liquidity in BTC’s $93,500 range.
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