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[AudraMiller]

Cryptocurrency analysts take a lot of time to look at various factors in the crypto coin before makign any decision and often look at the current market trends and the market volumes, to name just a few factors. According to one such analyst, I.e. JP Morgan, it seems that the liquidity of Bitcoin is currently very low, which is an indication that the volume that is available for trading is rapidly declining. As a result it is possible that trades can have a larger impact on the market and that the market may actually be even more volatile now. What are your thoughts on this development in Bitcoin? Could this volatility be indicative of a price drop in the coming months?

 

[Niftyicon]

If the volume available for trading is so low, doesn't that indicate that investors are favouring to hodl their coins than to sell them? The impact would be felt if a huge sale is made which could mean a decline in its price.

 

[Wisdom01]

I think if it's like that then it shows that many are no longer investing and trading on a short term basis , and are mostly doing the Long term trade and others i think

 

[BullyMaguire]

Is that a bad thing? For me no.. it may be bad because businesses who accepts them for payments may or may not get a lot of profits or loss

 

[Niftyicon]

You are right. With the presence of Elon Musk holding huge amount of coin in the market, there might be a big price drop if he decides to sell his coin in the coming months. Investors have to be careful henceforth.

You are absolutely right about investors applying caution especially small investors because they would likely be prone to more losses in such scenario.

 

[achawaskey]

Time will tell if it will be of factor, in crypto world trading of bitcoin is not like trading of flat currency. In vectors tends to keep their bitcoin for possibility of making huge profit.

 

[Kunkun]

Well fingers crossed on how things go, but shouldn't scarcity mean an increase in price? Most investors these days are holding for now to sell high later

 

[Kimetsu18]

I think this volatility could swing either way, it could lead to an increase in prices as well as drop in prices. Just like they have rightly, high volume trades can affect the market.

 

[Kunkun]

I think this volatility could swing either way, it could lead to an increase in prices as well as drop in prices. Just like they have rightly, high volume trades can affect the market.

True, it could go either way but most investors hold for when it goes up so even if it's goes down now I doubt most people would sell then, that would mean a loss

 

[Kimetsu18]

True, it could go either way but most investors hold for when it goes up so even if it's going down now I doubt most people would sell then, that would mean a loss

Sure. No one wants to accrue losses especially when it comes to investment, in this case, it is no different. Everyone will hold in hopes that prices hit ATH.

 

[Josemendez]

I think part of the reason for the higher volatility seen in bitcoin can be attributed to this fact. Nevertheless ,it will only be a matter of time before the coin rises to a greater height

 

[Niftyicon]

I think part of the reason for the higher volatility seen in bitcoin can be attributed to this fact. Nevertheless ,it will only be a matter of time before the coin rises to a greater height

Yeah, I think every one can easily agree that bitcoin has the potential to still surge higher in the coming months. That was quite evident with its recovery in the past couple of days.

 

[Josemendez]

Yeah, I think every one can easily agree that bitcoin has the potential to still surge higher in the coming months. That was quite evident with its recovery in the past couple of days.

If you have enough money, prepare to buy Bitcoin, because month of April will be the month of bitcoin. There will be a bullish run , so prepare

 

[Niftyicon]

If you have enough money, prepare to buy Bitcoin, because month of April will be the month of bitcoin. There will be a bullish run , so prepare

I like this positivity and I do hope it is so. I doubt I would be buying any though, would just like to see the one I have grow more..

 

[Josemendez]

I like this positivity and I do hope it is so. I doubt I would be buying any though, would just like to see the one I have grow more..

That is still cool. You only have to focus on the coins you have interest in so that you won't lose concentration in the end. Nor regret investing little

 

[Binita100]

On the latest move the volume have increased same with the price, one certain thing about the bitcoin price is it would increase more just be optimistic

 

[GoldenLady]

It definitely lead to a drop in price. But it's also making the coin more scarce, which according to theory should push the price up further.

Cryptocurrency analysts take a lot of time to look at various factors in the crypto coin before makign any decision and often look at the current market trends and the market volumes, to name just a few factors. According to one such analyst, I.e. JP Morgan, it seems that the liquidity of Bitcoin is currently very low, which is an indication that the volume that is available for trading is rapidly declining. As a result it is possible that trades can have a larger impact on the market and that the market may actually be even more volatile now. What are your thoughts on this development in Bitcoin? Could this volatility be indicative of a price drop in the coming months?

 

[Binita100]

It definitely lead to a drop in price. But it's also making the coin more scarce, which according to theory should push the price up further.

The coin price would rise , it would take some period before it rises ,if it drop just don't withdraw or sell , keep holding as you would see that it would rise

 

[Brain]

If the volume available for trading is so low, doesn't that indicate that investors are favouring to hodl their coins than to sell them? The impact would be felt if a huge sale is made which could mean a decline in its price.

Your observations is right low volume of trading points to the fact that it is mostly in people's wallet than out for sales. This will be even better for sellers I believe

 

[AudraMiller]

The coin price would rise , it would take some period before it rises ,if it drop just don't withdraw or sell , keep holding as you would see that it would rise

I agree with you here. That is the good things when it comes to a currency such as bitcoin, the longer you hold the more profit you will gain. Despite drops that may happen now, holding for a long period of time is the best way to go.