Crypto
While Bitcoin (BTC) has previously shown significant momentum in this market cycle, recent insights suggest that liquidity sources beyond Coinbase may be driving the trend.
A CryptoQuant analyst, Mignolet, specifically provided a detailed analysis of Bitcoin’s market, shedding light on the role of major exchanges like Coinbase and Binance in the ongoing bull cycle.
Shifting Liquidity Dynamics And Exchange Roles
In a recent post on the CryptoQuant QuickTake platform titled “Coinbase Dominance Remains Low,” Mignolet examined the trajectory of Coinbase’s influence on Bitcoin’s price movements.
The analyst highlighted that while Coinbase played a crucial role in the initial stages of this year’s Bitcoin rally, its dominance has since diminished. This shift indicates a broader distribution of liquidity across the market, with Binance emerging as a significant player in sustaining the bullish momentum.
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.
His analysis revealed that Bitcoin exchange-traded funds (ETFs) were approved earlier this year, spurring a surge in Coinbase’s trading activity.
This influx of liquidity was instrumental in driving Bitcoin prices upward and disrupting the traditional halving cycle expectations. However, as the rally progressed, Coinbase’s influence waned.
The analyst emphasized that while Coinbase remains a pivotal source of liquidity, Binance has assumed a more prominent role in the current market phase. Mignolet wrote:
Let me reiterate: I’m not saying that Coinbase liquidity is unimportant or insignificant. It’s incredibly important. What I am highlighting is that there’s an even more critical source of liquidity at play. = Binance
Notably, Binance’s growing dominance suggests that liquidity flows from a wider array of participants, contributing to a somewhat decentralized and strong market structure.
This redistribution could indicate broader institutional and retail interest in Bitcoin as traders and investors diversify their platforms.
Bitcoin Sees Sharp Rebound
Following a few days of correction dropping below the $95,000 price mark, Bitcoin has now seen a sudden rebound.
Particularly, at the time of writing, the asset has reclaimed the $100,000 price mark with a current trading price of $100,625, marking a 4% increase in its 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.
Featured image created with DALL-E, Chart from TradingView
Crypto
Samuel Edyme
Meet Samuel Edyme, Nickname – HIM-buktu. A web3 content writer, journalist, and aspiring trader, Edyme is as versatile as they come. With a knack for words and a nose for trends, he has penned pieces for numerous industry player, including AMBCrypto, Blockchain.News, and Blockchain Reporter, among others.
Edyme’s foray into the crypto universe is nothing short of cinematic. His journey began not with a triumphant investment, but with a scam. Yes, a Ponzi scheme that used crypto as payment roped him in. Rather than retreating, he emerged wiser and more determined, channeling his experience into over three years of insightful market analysis.
Before becoming the voice of reason in the crypto space, Edyme was the quintessential crypto degen. He aped into anything that promised a quick buck, anything ape-able, learning the ropes the hard way. These hands-on experience through major market events—like the Terra Luna crash, the wave of bankruptcies in crypto firms, the notorious FTX collapse, and even CZ’s arrest—has honed his keen sense of market dynamics.
When he isn’t crafting engaging crypto content, you’ll find Edyme backtesting charts, studying both forex and synthetic indices. His dedication to mastering the art of trading is as relentless as his pursuit of the next big story. Away from his screens, he can be found in the gym, airpods in, working out and listening to his favorite artist, NF. Or maybe he’s catching some Z’s or scrolling through Elon Musk’s very own X platform—(oops, another screen activity, my bad…)
Well, being an introvert, Edyme thrives in the digital realm, preferring online interaction over offline encounters—(don’t judge, that’s just how he is built). His determination is quite unwavering to be honest, and he embodies the philosophy of continuous improvement, or “kaizen,” striving to be 1% better every day. His mantras, “God knows best” and “Everything is still on track,” reflect his resilient outlook and how he lives his life.
In a nutshell, Samuel Edyme was born efficient, driven by ambition, and perhaps a touch fierce. He’s neither artistic nor unrealistic, and certainly not chauvinistic. Think of him as Bruce Willis in a train wreck—unflappable. Edyme is like trading in your car for a jet—bold. He’s the guy who’d ask his boss for a pay cut just to prove a point—(uhhh…). He is like watching your kid take his first steps. Imagine Bill Gates struggling with rent—okay, maybe that’s a stretch, but you get the idea, yeah. Unbelievable? Yes. Inconceivable? Perhaps.
Edyme sees himself as a fairly reasonable guy, albeit a bit stubborn. Normal to you is not to him. He is not the one to take the easy road, and why would he? That’s just not the way he roll. He has these favorite lyrics from NF’s “Clouds” that resonate deeply with him: “What you think’s probably unfeasible, I’ve done already a hundredfold.”
PS—
