Is the Bitcoin Price Drop a Sign of a Liquidity Crunch on the Horizon?www.tftc.io/is-the-bitcoin-price-drop-a-sign-of-a-liquidity-crunch-on-the-horizon/
314 sats \ 5 comments \ @Rsync25 24 Jun bitcoin
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50 sats \ 1 reply \ @Undisciplined 24 Jun
I think this is the more interesting possibility that’s being overshadowed by the Mt. Gox stuff.
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169 sats \ 0 replies \ @grayruby 24 Jun
It could be a confluence of things. I do think Bitcoin does tend to lead the stock market by a few months. Rightly or wrongly, it is a great proxy for global liquidity and risk sentiment.
That being said I think the surprise ETH etf approval and now the surprise timing of the Mt Gox distributions (was supposed to be October) plus the fed being a bit more hawkish than expected last meeting has more to do with the pullback, at very least the recent segment of it.
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0 sats \ 0 replies \ @SatsMate 25 Jun
Bitcoin is an omen for liquidity on the upside and downside.
Liquidity is definitely drying up, but I know our debts are increasing more than ever - and we will see more indirect stimulus over the next year.
Key Lessons I see Here:
  1. Don't trade on leverage
  2. "Risk on assets" underperforming Dow/Gold now. The markets smell something brewing
  3. Interest rates have been elevated for quite some time now, something is bound to break over the next 2 fiscal quarters
  4. Maybe now is a good time to have some dry powder ready to buy btc
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0 sats \ 0 replies \ @lightworks 24 Jun
The last big USDT print is still intact, never had a marketcap this high. So someone is waiting to buy in I'd say ;-)
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0 sats \ 0 replies \ @16d86e9daa 24 Jun
Bitcoin and other cryptocurrencies were falling as investors become more wary of risk assets. Market capitalization is one of the best ways to check for liquidity because large market cap cryptocurrencies tend to have a higher demand in the cryptocurrency market
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