The Bitcoin price has slipped below 26,500in recoil of about 4% over 24 hours. The low liquidity in the market would favor the jolts of the queen of cryptocurrencies.
This morning, the price of BTC hit a 7-week low, dropping below $26,200 around 8 a.m. before rebounding to around $26,300.
According to several analysts, the Bitcoin price is now strongly influenced by the operations of traders due to the low liquidity in the market.
It seems that there is currently liquidity as thin as paper […] While we can’t point to a direct reason for the weakness, any medium to large supply drives the market lower,” commented Matthew Dibb of Astronaut Capital.
Since the fall of the group FTX and its market maker Alameda last fall, liquidity in the crypto market has drastically decreased. This week, two major market makers, Jump Crypto and Jane Streetannounced furthermore to reduce the sail citing the regulatory uncertainty on the crypto in the United States.
“ The volumes have dropped considerably and in the news this week two major market makers came out of a number of exchanges “said Richard Galvin, co-founder of Digital Asset Capital Management, adding that this has impacted investor sentiment.
In addition to the lack of liquidity and repression by U.S. regulators, analysts also point to the Bitcoin blockchain congestion related to the Ordinals protocol and BRC-20 tokens in an attempt to explain the latest movement of the digital coin.
Bloomberg also reports that the correlation between Bitcoin and the actions has fallen sharply since its high point at the end of 2022.
This Friday, the entire market is losing momentum. Ethereum (ETH) and Binance Coin (BNB) are down 3.1% and 2.1% respectively over 24 hours.
The overall capitalization of the crypto market is now about 1100 billion dollars. The Fear & Greed Index, which analyzes the sentiment of traders, shows ” neutral ” with a score of 49.
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