Precarious Times for Bitcoin: Liquidity Dwindles, Threatening Price Stability

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Precarious Times for Bitcoin: Liquidity Dwindles, Threatening Price Stability
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The dwindling liquidity may lead to a steep correction in Bitcoin's price, confirming a bearish trend.

The dwindling liquidity may lead to a steep correction in Bitcoin’s price, confirming a bearish trend.

Despite rising above $27.5k briefly earlier this week, the flagship crypto-asset is back near $26k. One of the major factors restricting its price growth is dwindling market liquidity. Meanwhile, there has been a substantial reduction in Bitcoin trading volumes in recent months. Data from CoinMarketCap suggest that over the last 24 hours alone, the trading volume has dropped by over 32%.

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