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Rising Bitcoin liquidity could signal continued price recovery

2023-11-01 15:42 Wednesday

Bitfinex analysts said that the increase in Bitcoin market liquidity over the past four months is an encouraging sign for the continued price recovery.

Analysts said the increased liquidity gave traders confidence they could find buyers for their holdings.

Thereby reducing investment risk and signaling increased demand for the asset, it said, adding that this was welcomed by high-priced traders and institutions who preferred an asset class that offered exposure and exit without high spreads.

David Lawant, director of research at Flacon X, also believes that increased Bitcoin liquidity is a positive sign for the digital asset.