Following Bitcoin’s recent halving event, market analysts are closely eyeing the role of liquidity in shaping the cryptocurrency’s trajectory over the coming months.
According to insights from Kaiko, the strengthening liquidity could support a sustained rise in bitcoin’s price.
Bitcoin’s Liquidity Rebounds
Liquidity refers to the ease with which an asset can be bought or sold without significantly impacting its price. Recent data suggests that BTC’s liquidity has been steadily improving since the lows witnessed in the aftermath of the FTX collapse, particularly with the approval of spot Bitcoin ETFs.
According to Kaiko, improved liquidity is a positive development for Bitcoin, as it can mitigate price volatility and reduce the impact of large sell-offs. Strong liquidity is essential for supporting a prolonged positive trend in bitcoin’s price trajectory and increasing market confidence and demand.
Since the halving on April 20th, bitcoin’s aggregated market depth has sho
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