Bitcoin Faces Low Liquidity This Holiday Season Despite Pending Decisions on ETFs
-
Analyst Caroline Mauron predicts Bitcoin will have low liquidity over the holidays despite pending SEC decisions on ETFs. This is due to the collapse of Alameda Research.
-
Mauron expects higher volatility ahead of the spot Bitcoin ETF decisions in early January, exacerbated by poor holiday liquidity.
-
Lower liquidity means it could become harder to sell cryptocurrencies due to fewer counterparties. This could limit sustained bullish rallies.
-
Bitcoin's liquidity decreased significantly from January to April 2022 based on the amount of BTC needed to move prices by 1%.
-
Approving US spot Bitcoin ETFs could bring over $40 billion in new capital over 2 years, significantly improving cryptocurrency liquidity.