Swissblock, a market intelligence firm, is raising a red flag about Bitcoin (BTC). They’ve noticed a sharp drop in on-chain liquidity, a key indicator of how easily BTC can be bought and sold.
What’s the Problem?
Low on-chain liquidity means there aren’t enough buyers to soak up sell orders, potentially leading to price drops. Swissblock says this sudden decrease is worrying. They also point to reduced overall activity on the Bitcoin network.
The Bigger Picture
Despite this concerning liquidity dip, Swissblock isn’t sounding the alarm bells just yet. They maintain that Bitcoin’s long-term outlook remains positive, as long as certain risk indicators stay low. They emphasize that the price is now more influenced by on-chain activity than external factors. Lower activity makes the price more vulnerable to downward swings.
Current Bitcoin Price and Disclaimer
At the time of writing, Bitcoin is trading around $101,833. Remember, this information is for general knowledge only and isn’t financial advice. Always do your own research before investing in cryptocurrencies.
