Bitcoin (BTC), which has shown significant growth in the market, may now be driven by liquidity sources other than Coinbase.
Mignolet is a CryptoQuant analyst who has provided detailed information. analysis of Bitcoin’s market, shedding light on the role of major exchanges like Coinbase and Binance in the ongoing bull cycle.
Exchange and Liquidity Dynamics: A Shift in Roles
Recently, a post was published on the CryptoQuant QuickTake Platform titled “Coinbase Dominance Remains Low,” Mignolet examined the trajectory of Coinbase’s influence on Bitcoin’s price movements.
While Coinbase was a key player in the cryptocurrency market, it wasn’t the only one. initial stages of this year’s Bitcoin rally, its dominance has since diminished. Binance is a major player that has been able to sustain the bullish market momentum. This indicates an increased distribution of liquidity in the entire market.
Coinbase dominance remains low
“However, just before the rise in September-October, Coinbase dominance actually declined and has not significantly increased even now (red box).” – By @mignoletkr
More details https://t.co/nmnPGuz3WK pic.twitter.com/mBSImH8MwD
— CryptoQuant.com (@cryptoquant_com) December 11, 2024
Mignolet’s analysis points to a critical observation: Coinbase’s dominance in spot trading has notably declined during the second phase of Bitcoin’s current rally.
He revealed in his analysis that Bitcoin ETFs (exchange-traded fund) had been approved early this year. This sparked a boom in Coinbase’s trading activities.
Bitcoin was driven by the influx in liquidity. prices upward It has also disrupted the expectation that the cycles will be halved. Coinbase’s influence decreased as the rally continued.
The analyst stressed that Binance is now playing a larger role on the market, even though Coinbase still remains an important source of liquidity. Mignolet wrote the following:
Remind me: Coinbase liquidity is not unimportant. The importance of Coinbase liquidity is immense. It’s important to note that the source of liquidity is even more crucial. = Binance
Binance’s increasing dominance indicates that liquidity is flowing from a wider range of participants and contributing to an somewhat decentralized but strong market structure.
It is possible that this redistribution will have a broader impact. institutional and retail interest Bitcoin traders and Bitcoin investors are diversifying their platforms.
Bitcoin sees sharp Rebound
After a couple of days where the price dropped below $95,000, Bitcoin is now experiencing a rapid rebound.
At the moment of this writing, it is important to note that the asset in question has reclaimed the $100,000 price mark The current price is $100,625, which represents a 4% rise in the price.
This increase in Bitcoin’s price has now brought the asset to a mere 3.6% decrease away from its all-time high above $103,000 established earlier this month.
Charts from TradingView and DALLE were used to create the featured image.
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Source: www.newsbtc.com
