Lack of liquidity
On Monday morning the 18th of March 2024, a few lucky people had the chance to buy Bitcoin as low as 8900 USD. Because for a brief moment the price of Bitcoin on the BitMex exchange tanked from 67k to just below 9k. This all to jump back up again to its original price.
How is that possible, is the first reaction, but actually it is not so out of the ordinary, because at the current prices, it is not entirely strange that some whale decides to offload a bunch of Bitcoin. But not all exchanges have that much liquidity… And so didn’t BitMex. Which created a huge crater and filled almost the entire order book!
A pat on the back for the ETF’s
This shows how desperately necessary the the Bitcoin ETF’s are and were. They create the volume that is necessary to fulfill the needs of the market.
Some exchanges will have these kind of problems more and more in the future as Bitcoin will rise even higher!
The ETF’s will take in the spot of the smaller exchanges and only the bigger exchanges will be able to withstand the buy and sell pressure from the markets.
Always check out where you put your crypto and do your due diligence if you pick an exchange!
Sincerely,
Pele23
There is liquidity in DEXes on Ethereum but I guess getting WBTC, dumping it and redeeming USD pegs is also tricky and risky in these volumes.
That’s exactly what I am talking about!
That's exactly the picture and what I've seen too is how much the price went down but quickly recovered.
This post has been manually curated by @bhattg from Indiaunited community. Join us on our Discord Server.
Do you know that you can earn a passive income by delegating your Leo power to @india-leo account? We share 100 % of the curation rewards with the delegators.
100% of the rewards from this comment goes to the curator for their manual curation efforts. Please encourage the curator @bhattg by upvoting this comment and support the community by voting the posts made by @indiaunited.
I wonder if anyone managed to buy BTC at that level.
900 BTC was traded at that level!