Topic: Something is seriously wrong with bitcoin markets. No liquidity? Should we sell? - page 2. (Read 470 times)

What do you think is the reason for the high price of Bitcoin? It's the supply and demand, so if there is a high demand and there is less supply or you can say liquidity, that makes the coins more valuable, so if you hold a couple of Bitcoins and there is low liquidity available while there is high demand, you can ask for a higher price for your coins and the buyers will have to pay you what you ask for if there are no other sellers for them to buy from.
Liquidity will never be a problem for Bitcoin, remember this. When there is less liquidity in a market or an exchange, sellers will start bringing in coins from other places to sell them there if they see a high demand which will make the price go higher eventually.

Just continue hodling. There is nothing wrong with how bitcoin price performs in the market. The fact that we are seeing a rapid growth more than we can imagine is just normal for bitcoin. There’s nothing new to it as bitcoin price will consistently grow if there are no distractions on one side. However, we can’t keep the assurance that bitcoin price will never experience price correction later on. The fact that it undergo a rapid growth, surely a rapid price decline will happen later on. Patience and faith with our investment are the keys.

OP, not sure why you think there is something wrong just because price went up a lot. It's Bitcoin. This is what it does.



If you're wondering if there will be a correction in the price after quickly gaining so much, the answer is yes, likely. But that's just normal price movements. There's nothing wrong with that market.


Whether you sell or not is up to you. Are you a short term trader? If so maybe it is a good time to sell and hopefully there will be a correction back to low-$50,000s where you can pick up more. I'd be pretty surprised if there isn't a correction in March, but nobody knows the future. If you're a long term holder, or even just looking to sell before the bull market ends, then this would be a terrible time to sell just before the bull market gets going, or just as its starting. We've got many months of bull market ahead, nobody in their right mind would sell long term bitcoin right now leading into the start of the bull run.


In terms of liquidity, the ETFs use the OTC market. Though with how much they are buying no doubt probably every day now OTC sellers are having to pick up bitcoin directly off exchanges to sell to the ETFs (or however the heck that all works haha). So yeah definitely bitcoin is being pulled off the exchange markets and going into the ETF holdings, which of course is part of what is causing the price to go up. There's nothing wrong with that. That's just how markets work. Without the ETFs there would already be lots of buy pressure at this point in the market cycle, now add in one or two billion dollars per week being scooped up by ETFs and that's causing a lot more of the supply to be bought up and so prices are going up. Again, that's how markets work. Nothing broken about it. More buyers equals higher price.


With the TradFi community piling into Bitcoin for the first time thanks to the ETFs, once the halving drops issuance down to 450 btc a day, and once the normal spot market buyers start FOMOing in (which I don't think has even started yet) there's going to be EXTREME supply shock. Like, after the halving when 450 fewer btc are being mined each day, and like a hundred 100,000 new people are signing up on crypto exchanges per day to get a piece of Bitcoin (as well as other cryptos), AND ETFs are buying up a few hundred million dollars per day, AND people aren't selling because they know prices are going to be much higher very soon. Yeah things are gonna get pretty crazy.

If I was you, I will just hold bud, there is absolutely no reason to sell at this point because it's still very early, if centralized exchanges like coinbase lack enough bitcoin liquidity to cater for the ETF's demand, it simply means that the fund managers will have to make do with the amount of bitcoin that is available, and they will also have to pay more for it at every stage, which simply means that the value of bitcoin will continue to grow.

So, hold your bitcoin, selling now might turn out to be a very big mistake on your path, bitcoin is on its way to $100,000 and above between now and March next year, it's time to get super rich, hold your bitcoin and do not sell.

if you expect another drop, it's up to you if you want to sell. many of the holders seem to want to keep holding. but there are already speculations that there will be a slight correction after this rally.

it's just something to worry about though because we know every halving the prices will go to heights. so when there is no liquidity, it means everyone is just holding on. and it's going to be harder and harder to see BTC acquired and prices will keep going up.

I wouldn't sell because there's no liquidity.  Why make Wall Street's job easier to steal everyone's coins and destroy Bitcoin as something that is usable by it's longtime supporters?  I say we all not only hold the line and not sell our crypto, I think people should continue buying.  Really stick it to these fund managers.  Make them pay $100,000+ to get their hands on our coins.  Don't give up your future gains and help put a lid on the market by providing sell liquidity just so you get less $ for your coins...  Now is the time to really punish Wall Street.  Make them bid the price up to a million per coin if they have to in order to run their ETFs.

Well I don't know if anyone isn't suprised at the current surge of price because the price movement is looking so crazy and because am for one suprised at the speed of the bull and with what am seeing I think it's only advisable to hold that coins till it breaches the former ATH before I can think of selling anything that's related to coins although now will also be a perfect time to find atleast some altcoin that can give rapid profit and flip in some cash because the price movement is just crazy and I know some good altcoin also take advantage of the movements.

Exactly there is no way that there will be liquidity issues entirely in bitcoin. That will mean the buyers will be way ahead of sellers and sellers which cannot be because for liquidity sweep to happen there will be equal amount of demand and supply to make that happen. Bigger exchange’s definitely have this liquidity to hodl the market. As for selling your bitcoin that is personal issue that OP needs to address.

Many investors have individual target to take profits their could be many people that will take profits at this $60k price same way there was investors that took profits at $45k. But if you’re scared of a dump I will say holding long enough will help you curb that if at all the money used to invest in it is a risk free money that you can afford to lose

Why are "we" worried though?

I don't have 2 coins, but even if I had 200 or 2000, I guarantee that would sell at the drop of a hat in whatever liquidity situation there is. Conversely, if I wanted to plop down money to buy 2 or 2000, I'm almost certain I could approach my P2P network and it'd get done fairly quickly.

Do you really think ETF sellers will sell if they don't have underlying Bitcoin? They'd just get IOUs.

There’s always a liquidity because of the demand and looking at the price right now, many are being liquidated for playing the big risk and dealing with the volatility greedily. We have to be more target focused and know when to take profit. The price is unpredictable right now, it can hit the higher high and the lower lows in an instant, many are taking profit already while many are also taking risk to hold more, better to choose your side wisely.

Yea I'm wondering too if there would be a liquidity issue in this market, there are always
buyers and sellers and obviously in this bull market there are less sellers and more buyers

The top exchanges are not going to get caught out with a liquidity problem.

I also like the way the OP in the thread title assumes we are on the same page and
asks "should WE sell?" ATM and for the short to medium term I am HODL'ing.

Everyone is free to do whatever they want!

Sell ​​at the highest price then accumulate when the price correction occurs, that's fine instead of just holding.
Such an approach is basically very profitable, especially as we have never seen prices rise high without being followed by a correction. The lesson is, there are many roads to Rome which means you can gain more profits if you are able to understand the volatile markets.

If OP sells 2 bitcoins at $64k today and he places a buy order at $59k, then he will have 2,169 btc in his account. But this approach is not necessarily everyone's cup of tea, especially if they are comfortable with just holding. The main factor for success with this approach is their analysis and ability to understand the market.

Looking at the price right now, asking if you should sell seems a bit weird question. I am not saying you are wrong, of course you can sell if you want to and that's your decision, but it does feel like a bit different situation at the end. We should consider what we can do with this with what we got and looking at the price right now it looks like it has broken over 60k already, so why would you want to sell right now?

I mean if you think that it has peaked for the time and it will crash soon and have a big correction then go ahead and sell, maybe you are right and you will make a lot of profit from that, there is nobody that can provide any proof to it at all. However, we need to also remember that it is going to eb something that will not be agreed by many as well.

Don't be deceived by that, Bitcoin is on the right track with so much energy to break new grounds. I don't not think that lack of liquidity will be a sign of pump to dump because Bitcoin is far from it. The all time high is the target and it is looking like price will break it soon. As at of this moment, price is at $61k and still pushing stronger. The right thing to do now is to continue to HODL because like some people already suggested, we are heading to $100k. This can happening after the halving or anytime soon. Provided what you invested is money you can keep in Bitcoin for long, I do not think you should worry about the liquidity. Simply sit back and enjoy watching the green candles as they continue to print.

On the basis that you bought 2 Bitcoins that year to hope for a profit on the return of the price, then choosing to hold for a while would not be wrong if desired.
If the price has increased far from the purchase price, then other things, such as mistakes, whatever they are called, people don't care about them.

Holding Bitcoin up to this point makes perfect sense bro. $60k and on its way to $69k. What percentage of profit has been obtained from the purchase price at that time.

Coinbase is the leading bitcoin/cryptocurrency exchange in the United States, and ETF-related purchases are done through Coinbase Institutional — through OTC. I'm pretty sure Coinbase has ample liquidity to support these purchases.

The risk for you in this case is mainly the volatility, not necessarily the liquidity. Of course, liquidity will almost always be thinner when the price movement was violent.

Hold.. Hold... $100k is certain in this bull market that has already started. The market might still pull back a little after all this pumping, or it might not. So, it's better you just hold and set a target price to sell in factions. Since you bought at $21k, you already have a huge profit now, but don't rush to sell off so you don't regret it by the time you see the price going above $70k. 

I mention selling in fractions; yah, what I mean is, you can set about four target prices and the fraction of bitcoin you will sell when the price is reached. For example, you can set to sell 0.5 BTC at $80k, another 0.5 at $90k, and so on. Remember that the peak of the bull market is not yet reached, and it could happen next year because this year the price will surpass the previous ATH.

Let me say I was surprised when I first read your headline, and also with the body, I am even more surprised. Well, if you must know, nothing is wrong with the Bitcoin market and the relationship between exchanges, Bitcoin and ETF companies cannot in any way affect the coin negatively. If the EFT companies move their Bitcoin from exchanges and other arrangements and thereby terminate their agreement with them, other arrangements would have been set in place to accommodate the Bitcoin removed since they always repurchase if that at all leads to liquidation. This cannot in anyway affect the liquidity of the Bitcoin market since what they remove is being purchased back, they can't delay it since it is all business for them.

They are just rearranging the business mode, or better called restructuring it since the ETF has been approved, which also means they've achieved their aims, so why still depend on exchanges and others like before? They also need to build people's trust and not rely on third-party companies.

Liquidity crunch, how? Have you seen the market capitalization of Bitcoin lately? This should have changed your mind about this question. It is increasing every month, and as I write, it is a little bucks short of $1.2T. This is huge. Can you compare this to the few hundreds of billions recorded about this time last year? This can only mean that Bitcoin is progressing and well-liquid, and not otherwise. The price of Bitcoin has even hit and breached above $60,000 which I never expected would happen in the next 3 months, so it is all positive for it.

Therefore, you do not have to liquidate your position or advise anyone to do so for any reason. This is the bullish season of the coin and will goodly move positively till the first half of 2025.

I'm curious where's the proof that Coinbase has no liquidity? check this sites, it's clear there are more people want to sell their coins instead of hold it https://bitcoinity.org/markets/coinbase/USD

Honestly $60K is still nothing because most people are predicting Bitcoin price should able to double or triple from the last ATH, as people said "history repeats by itself".

But do you want to sell or hold your coins? it's all up to your decision, the only rule is there are no rules.

You can still hold because the price will definitely surpass the successive ATH .