{"id":162347,"date":"2023-09-25T17:23:05","date_gmt":"2023-09-25T11:53:05","guid":{"rendered":"https:\/\/dripp.zone\/news\/?p=162347"},"modified":"2023-09-25T17:23:05","modified_gmt":"2023-09-25T11:53:05","slug":"liquidity-dwindles-threatening-price-stability-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/liquidity-dwindles-threatening-price-stability-crypto-news\/","title":{"rendered":"Liquidity Dwindles, Threatening Price Stability &#8211; Crypto News"},"content":{"rendered":"<p><\/p>\n<div>\n<p>Bitcoin\u2019s trading volume has taken a significant hit this year, and the recent market activity has been characterized by low volatility and narrow price ranges, limiting trading opportunities.<\/p>\n<p>Despite rising above $27.5k briefly earlier this week, the flagship crypto-asset is back near $26k. One of the major factors restricting its price growth is dwindling market liquidity.<\/p>\n<p>According to CryptoQuant\u2019s latest analysis, this poses a precarious situation for Bitcoin, which is now at risk of a potentially steep correction.<\/p>\n<ul>\n<li>The on-chain intelligence platform <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/cryptoquant.com\/insights\/quicktake\/650ca11b21ae640b03725cd0-Bitcoin-market-liquidity-decrease?utm_source=telegram&amp;utm_medium=sns&amp;utm_campaign=Quicktake&amp;utm_content=Crazzyblockk\" data-wpel-link=\"external\">pointed<\/a> out that Bitcoin market liquidity has significantly decreased in the current year.<\/li>\n<li>Bitcoin derivatives trading volume, for one, has plummeted by 73% since March 2023.<\/li>\n<li>Spot trading of the crypto experienced an even more severe decline and is currently down by 94% during the same period.<\/li>\n<li>Meanwhile, there has been a substantial reduction in Bitcoin trading volumes in recent months. Data from CoinMarketCap suggest that over the last 24 hours alone, the trading volume has dropped by over 32%.<\/li>\n<li>Since liquidity in both spot and futures markets is vital for price growth, the latest reduction in liquidity raises concerns about the Bitcoin market\u2019s stability.<\/li>\n<li>As such, a lack of liquidity can lead to heightened price volatility.<\/li>\n<li>Experts <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/cryptopotato.com\/bitcoin-dilemma-25k-or-30k-coming-first-btc-price-analysis\/\" data-wpel-link=\"internal\">suggest<\/a> that if Bitcoin fails to maintain its bullish momentum and falls below the crucial support level of $25k, the market will likely decline towards the $20k area.<\/li>\n<li>Besides, Bitcoin\u2019s liquidity issues might also deter institutional investors, as pointed out by CryptoQuant.<\/li>\n<\/ul>\n<div class=\"code-block code-block-12\" style=\"margin: 8px 0;clear: both\">\n<div><span style=\"font-size:11px;color: gray\">SPECIAL OFFER (Sponsored)<\/span><br \/>\n<b>Binance Free $100 (Exclusive): <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/cryptopotato.com\/pl\/binancebanner\" data-wpel-link=\"internal\">Use this link<\/a> to register and receive $100 free and 10% off fees on Binance Futures first month<\/b> (<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/cryptopotato.com\/buy-bitcoin-5-easy-steps\/\" data-wpel-link=\"internal\">terms<\/a>).<\/p>\n<p><b>PrimeXBT Special Offer: <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/cryptopotato.com\/pl\/primexbt2\" data-wpel-link=\"internal\">Use this link<\/a> to register &amp; enter CRYPTOPOTATO50 code to receive up to $7,000 on your deposits.<\/b><\/p>\n<\/div>\n<\/div>\n<p><!-- AI CONTENT END 1 --><\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Bitcoin\u2019s trading volume has taken a significant hit this year, and the recent market activity has been characterized by low volatility and narrow price ranges, limiting trading opportunities. Despite rising above $27.5k briefly earlier this week, the flagship crypto-asset is back near $26k. One of the major factors restricting its price growth is dwindling market [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":31229,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[230,225,221,227,226,228,229,60,223,224,222],"class_list":["post-162347","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency","tag-brave","tag-coinbase","tag-crypto","tag-decentralised","tag-decentralized","tag-decentralized-exchange","tag-erc-20","tag-featured","tag-meme-coin","tag-robinhood","tag-solana"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/162347","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=162347"}],"version-history":[{"count":2,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/162347\/revisions"}],"predecessor-version":[{"id":162352,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/162347\/revisions\/162352"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/31229"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=162347"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=162347"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=162347"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}