Analysis: Liquidity Declined During Vacation Season… Even Long-Term BTC Holders Are Adjusting Spot Positions
CryptoNewsTerminal Staff05 Jul, 2024
Analysis: Liquidity Declined During Vacation Season… Even Long-Term BTC Holders Are Adjusting Spot Positions
According to The Block, Bitfinex reported in a study that “as the summer vacation period approaches, institutional trading appears to be declining, and market liquidity is decreasing along with it.” Bitfinex emphasized that “on-chain data indicates long-term Bitcoin holders (3-4 years) are exhibiting risk-off behavior and are adjusting their spot positions. This is likely due to reduced confidence in the bullish cycle following selling pressure from the German government and Mt. Gox. On the other hand, continued BTC weakness could ease selling pressure from miners.”