Post
Topic
Board Speculation
Re: Something is seriously wrong with bitcoin markets. No liquidity? Should we sell?
by
MFahad
on 29/02/2024, 02:08:53 UTC
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?

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.