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

Not only that, but I'm not sure why OP thinks ETFs and whatever demand for bitcoin they generate has everything to do with Coinbase.  When we're talking institutional investors, I have to assume that they're looking for the lowest price when they're buying and aren't going to use a single exchange--and that's if they even use an exchange at all.  Those people would probably know whales willing to sell at a reduced price off-chain or something like that.  

I don't know exactly how the big boys buy their bitcoin, and even putting Coinbase aside I don't think there's any sort of liquidity problem anywhere.  What I think is that this thread is based on an erroneous assumption or bad information.

Ha ha.  The Trump comment was amusing, but that last sentence is absolutely true in the sense that bitcoin never does what anyone expects it to do. 

Don't sell yet.   The price should max out Wednesday evening, after which Trump goes back to court.   BTC does not like reality.  :/

Yes, we are facing some issues right now, since the whales aren't putting enough money in BTC, as firstly expected. I read some news right now stating that only 11$ million dollars were invested in Bitcoin through EFTs, against an expectation of 100$ million dollars. That is a much inferior volume which doesn't correspond what the market was waiting for. As consequence, we have a lot of negativity and pessimism from investors who also feel fearful about continue investing in BTC.

Those whales know about it, and that is probably their goal to cause this kind of FUD in the market, as they can crash Bitcoin's price to deeper levels this way, acquiring many more coins right after than they would at current rates. If you want to be manipulated by those whales, then go ahead and sell your 2 Bitcoins right now! They will thank you very much... However, if you are able to see ahead a little more than your current vision range can reach, I would say you to keep holding. Predictions are still good on medium term, as they say Bitcoin will hit 150,000$ by 2025.

I also don't understand why he is worried about the liquidity of this market. Remember, he is only holding 2BTCs as compared to millions of BTC in the market. And the market cap of this top coin is quite huge. As he already waited to grow the value of his btc holdings, why not wait a lil bit longer to further increase its value, that is, if he believes in this market.

Looking at your past posts you held when Bitcoin fell below your buying price and even bought another.
It all depends on your personal target and real life needs
You can choose to take some profit if you feeling scared but what's a year or two if you have already held since 2022.
Holding for a year plus  is proof that you don't implicitly need the money to survive
You can place a stop loss on $30-$35K your choice and if it ever falls below
Then you should still have a modest profit of around $20K.
But with amount like that holding Bitcoin would really net you profit that would be worth the waits and emotional battles.
Your profit taking strategy do amazes me.
OP can choose to place stop loss below the $60K zone  selling the $50K worth since I believe it's been holding quite well.
And can choose to buy some again in another wallet if it falls way below the selling price
Nice merit by the way 7777
My favorite numbers.

so the op purchased at 44k and is now around 126k

sweating a lot and hands want to let go.

but lets see sell 50k worth hold 76k worth and you are a sure winner

still have lots of coin in hodl mode more than one  all original money is back in his pocket.

I dont see a problem the markets are bullish or we'd have fallen in price back to 30k possibly.   That erratic BTC price movement is quite normal and now its not there to such a large degree of change its a bit boring.   BTC still works out as a volatile asset but I believe the volatility is lower then its been in previous cycles, the development ongoing is bringing in a variety of operators with different objectives.

  Now we have ETF trustees who just want to collect a certain of BTC and charge a daily percentage fee for holding those BTC in trust and giving a tradable price to anyone who wants it.  Something a bit different but not too radical and on top of those market changes is the protocol itself and its usage by different people, it wont always be the same every year but I dont see a decline or any deterioration personally.

Selling your Bitcoin in this current price, I don't think it will give you exactly what you want from your holding, Because the high fees of Bitcoin is still higher and is making some holders to continue holding their Bitcoin until the high fees reduce before they can sell to achieve incomes. Since you used huge amount of capital to purchased Bitcoin last two years and hold till this season, you need to endure for the high fees to return back to normal, so that you will be proud of the income you are going to achieve from your holding, Because the price of Bitcoin is still high in the market for holders to accumulate incomes. It make sense OP, if you can continue holding your Bitcoin in your wallet but if you know your wallet is not safe for the Bitcoin, you can change them to safe wallet where they will be safe till the right time to sell appear.

I'm not surprised to see some of these threads on the forums but this one takes the cake. The OP worried about a supposed liquidity crunch to sell his two bitcoins, when the bitcoin market is extremely liquid, more for those amounts and open 24/7. There was liquidity crunch in 2008, what there is now with some rate hikes doesn't even remotely resemble it, just look at inflation is still rising.

So, if you want to sell, OP, sell, because at the end of the day we cannot be 100% sure how the price will go, although it will most likely go up over the next year, but not because of a supposed lack of liquidity that does not exist. sgbett has given you good advice as well.

You are getting liquidity and volatility mixed up. Price has been relatively flat for the past couple of weeks with a few dips and pumps but overall not much movement. When etfs entered the game, they provided more liquidity. Since there is more liquidity there should be less volatility.

When a markets liquidity is low, you get high volatility because there are less buyers and sellers In the market. One person can easily control the price of the asset as long as they own a large amount.

I am still holding those 2 coins, although getting worried about bitcoin dropping after the halving. I was also worried about bitcoin dropping after the ETF's came out also.

from year to year the price of bitcoin continues to grow significantly, this shows that adoption of bitcoin is slowly growing, before yesterday's halving, many expected the price of bitcoin would penetrate $100k but that did not happen, however, every 4 year cycle, the price of bitcoin continues to increase sharply, it is very likely that bitcoin will touch $100k in the next few years so those who want to hold bitcoin in the long term should do so, don't have any doubts.


the market correction that occurs in bitcoin is natural, the market is definitely saturated when the price of bitcoin has risen, so don't think that the decline in the price of bitcoin that occurs will be permanent, that's wrong.

That should be good news to you, if centralized exchanges are lacking bitcoin to sell then it means the demand of bitcoin is on the rise and scarcity would only increase the price of bitcoin for us, what you should be doing is holding and be less bothered about selling, cause right now if you sell so many person's are more than available to buy back from you and when the price scyrockets you would so regret it.

Liquidity can't actually affect bitcoin at this point that it is quite high on demand, it only a sign that you should hold your bitcoin even more.

Lack of liquidity!?

You can buy/sell BTC *everywhere*

You should only be concerned with such events if you are a day trader and try to profit of every movement. But if you bought in 2022 and still waiting, you're likely a long term investor so you should wait for a decent exit price. The bull market has only just begun, and there will be many corrections when other holders will be taking profits, but it's important to not panic thinking that that's the big crash and just wait. But also not get too greedy and missing on the bull market entirely. So it's best to sell in batches throughout the bull market and get some average price.

I refuse to sell due to the lack of liquidity. Why make it easier for Wall Street to snatch everyone's coins and undermine Bitcoin's usability for its loyal supporters? I propose we hold firm and refrain from selling our crypto. Moreover, I advocate for continued buying, sending a clear message to fund managers. Let's make it costly for them to acquire our coins, demanding over $100,000. Let's not sacrifice our future gains or provide sell liquidity that diminishes our coin's value. It's time to hold Wall Street accountable. Let them drive the price to over a million per coin if they want to incorporate our assets into their ETFs.

Good calculation skills. 0.169 Bitcoin for me, then I can treat the people who live around my house to tea. I will invite all my neighbors to drink until their stomachs are bloated. Lol

Selling at $64k seemed to me the wrong decision because $69k was very close. If there is other income that can cover daily needs, maybe I will hold until Bitcoin breaks the price of $100k.
So later I can invite some neighbors for a holiday. Lol.

OTC, they are purchasing huge chunk of Bitcoin over the counter either from exchange or the miner so that they purchased will not gonna cause a huge price impact in the market.

Besides the market is already continuously pumping hard with volume but not equal to the ETF volume. Probably some ETF provider is buying on exchange while some of them is on OTC. Although you point out a valid concern but I’m sure this sell pressure will absorb by those will want to enter late wants sell off begin.

If I was a trader I would look at things like this:

Actual: -$42k
Paper: +$84k
Cost Basis: $21k/BTC 
if BTC dies you are $42k down, if it goes to $1million. You still haven't taken profits but you have $1.96m on paper.

If you sell 1:

Actual: +$20k
Paper: +$42k
Cost basis: -$20k/BTC ie

if BTC dies you are $20k up, if it goes to $1million, you missed out on $979k. But you have already taken $20k and have £979k on paper



You have to bet to make money, but if you go broke you have no stake.

Not financial advice but reducing cost basis is one of my favourite risk mitigation strategies.

Well it is actually a question to ask your self also the answer can come from you also do you know why because when you bought that bitcoin in 2022 at the rate of $21k which we all know that bitcoin was at it downtrend then. But that's the business because nobody will like to buy up and sell down no it is just like buy store and sell businesses that exactly what it is...
 
If you potentially think that you are going to sell your investment I think is a choice you should make for your self because of regrets in the future bitcoin is fast rising and don't be surprised that it might hit $100k before the half of year so if you want to sell yours go ahead bitcoin is become the asset that the whole atmosphere want to buy and you are thinking of liquidity at this early stage of us to prosper with bitcoin...

I am not assuring you that bitcoin is going to liquidate or not but make a wisest choice for your self since you already have two bitcoin oh mehn you know what you are talking about already you are making a $80k profit from your both bitcoins that's actually amazing if you can keep more to gain more that your confidence not mine but if you feels like to sell it because you are afraid of liquidity that's also yours just be wise for your self >>>>>

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 .

as far as i know, the bitcoin etf providers don't buy bitcoin very significantly as their company's reserves, they only allocate a small amount of their capital to buy bitcoin, because the most important thing for them is their responsibility to the fed, not to bitcoin, so they don't need to buy a lot of bitcoin to support their bitcoin etf product.

and discussing price correction, maybe that will happen because usually before the halving there will be a price correction. it's the holder's decision whether they want to sell their bitcoins or not, but i myself prefer to hold them.

It is better yoy hold your coins. You will be happy when bitcoin reaches higher prices. I will advise anyone that want to sell to wait for at least six figures which starts from $100000. That would be when you want to sell fast because bitcoin will still go higher than that. If you are not in need of the money for now, just hold it on your noncustodial wallet and expect higher return.

I'm not complaining as I purchased 2 bitcoins in 2022 at 21K each, near the lows.

However, is something wrong with the bitcoin markets. I figured this would happen because those ETF's need to use exchanges to purchase coins and how is coinbase going to have the liquidity to deal with the current ETF demand.

What do you think, is there a liquidity crunch and it makes sense to sell now because sellers will come in soon to take advantage of these high prices? Or does it make sense to just hold at this point?