Bitcoin, volumes are lacking: fear reigns supreme
On Bitcoin, but more generally on the crypto world, volumes are currently lacking. To explaining it better: only on-chain out-flows are seen and there is no shadow of in-flows.
But beware, seeing a positive sign in this data could be wrong since what drove the crypto flight from CEXs was fear, not security.
How does an asset move without volume? It doesn't!
In fact, on Bitcoin, trades seem increasingly rarefied as well as on other cryptocurrency crosses. The exchanges, although they do not highlight it, are going through a real "liquidity crisis," some more and some less. Even DeFi, although structured paradoxically opposite to CeFi needs liquidity to survive. A liquidity pool without liquidity is just a pool. Have you ever tried to take a dip in a pool without water? You will see that you will only hurt yourself physically. The concept is the same only the perceived pain is mental and directly proportional to the erosion of one's capital.
In short: storm air. The only capital left on-chain risks forced liquidation while a "tacit" run for cover takes place. No one is screaming because no one is able to see but if there were a chance only cries for help would echo.
Will the crypto world recover?
The crypto world has always recovered. But before doing so it has often had to shake off a lot of burdens, often unfairly. This certainly does not represent a happy time for the industry, which for all intents and purposes seems to show no signs of progress, but rather a recession.
This certainly does not mean its death... It often means its growth: it is in fact thanks to these collapses that a new need is created in the sector and, as in all markets, sooner or later an entrepreneur interested in satisfying it will step in.
But beware, seeing a positive sign in this data could be wrong since what drove the crypto flight from CEXs was fear, not security.
How does an asset move without volume? It doesn't!
In fact, on Bitcoin, trades seem increasingly rarefied as well as on other cryptocurrency crosses. The exchanges, although they do not highlight it, are going through a real "liquidity crisis," some more and some less. Even DeFi, although structured paradoxically opposite to CeFi needs liquidity to survive. A liquidity pool without liquidity is just a pool. Have you ever tried to take a dip in a pool without water? You will see that you will only hurt yourself physically. The concept is the same only the perceived pain is mental and directly proportional to the erosion of one's capital.
In short: storm air. The only capital left on-chain risks forced liquidation while a "tacit" run for cover takes place. No one is screaming because no one is able to see but if there were a chance only cries for help would echo.
Will the crypto world recover?
The crypto world has always recovered. But before doing so it has often had to shake off a lot of burdens, often unfairly. This certainly does not represent a happy time for the industry, which for all intents and purposes seems to show no signs of progress, but rather a recession.
This certainly does not mean its death... It often means its growth: it is in fact thanks to these collapses that a new need is created in the sector and, as in all markets, sooner or later an entrepreneur interested in satisfying it will step in.
cryptohubble