Bitcoin Bulls Are Testing The Year's High With Liquidity Light
Comment of the Day

July 03 2023

Commentary by Eoin Treacy

Bitcoin Bulls Are Testing The Year's High With Liquidity Light

This article from Bloomberg may be of interest to subscribers. Here is a section:

“Historically liquidity is definitely lower around holidays and combined with a relatively large increase in leverage recently, prices will be more susceptible to sharp movements,” said Kyle Doane, a trader at Arca. “The market is still leaning bullish and overall sentiment continues to improve.”

BlackRock refiled paperwork with the US Securities and Exchange Commission on Monday through Nasdaq to add new details to its proposal for an ETF. 

A spot Bitcoin ETF has long been seen as the holy grail for the crypto industry, as a way to reach a broader swath of consumers, but the SEC has repeatedly rejected prior filings. Bitcoin reached almost $69,000 in late 2021.

Eoin Treacy's view

Bitcoin is a supply inelasticity meets rising demand environment at present. Supply cannot easily be increased but demand could surge with the introduction of a spot ETF. That is fuelling speculation about what it will take to get a project over the line.

Know your customer regulations are something every financial firm is familiar with. That should not be a big obstacle in creating a fund. The question of the exchange on which the traffic will take place on is still open. Coinbase is the only one of sufficient size and which has US operations to fill that role.

The bitcoin price rebounded today to test the upper side of the short-term range and has continues to have first step above the base characteristics. That’s a solid sign of potential for additional upside. 

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