Bitcoin bears have been selling on every rally over the last few months, and analysts believe that a liquidity boost fueled by BTC’s “fresh all-time highs” will help break the cycle.
“Market is in need of a big liquidity boost,” pseudonymous crypto trader Daan Crypto Trades wrote in a June 13 post on the X social media network.
The trader’s sentiments appear to have been informed by Bitcoin’s (BTC) “whipsaw” price action as it consolidates within a wide range, stretching from $66,500 to $72,000.
Full-swing bleeding and “selling into every pump has been the theme for the past couple of months,” explained the trader, adding that one of the best ways to end this cycle “has always been a fresh all-time high for #Bitcoin.”
Data from Cointelegraph Markets Pro and Binance shows BTC is trading at $67,474, 10% below its all-time high of $73,808 reached on March 11.
BTC/USD daily chart. Source: Binance
Daan Crypto Trades said that the price can move swiftly up and “it doesn’t always need some catalyst besides price simply going up.”
This requires high liquidity, which allows market participants to buy more BTC, resulting in a tighter bid-ask spread and driving prices higher.
Fortunately for Bitcoin bulls, this liquidity might come soon, after Microstrategy, the largest corporate BTC holder, revealed its intention to raise $500 million via a convertible senior note offering to “acquire additional Bitcoin” and other general corporate purposes.
Source: Michael Saylor
“That’s a fresh $500M liquidity impulse for you right there,” said Daan Crypto Trades in a June 13 X post reacting to the MicroStrategy news.
The trader also added that increased inflows into the spot Bitcoin ETFs could also add to the liquidity required to push BTC out of consolidation.
Fellow trader Jelle shared similar sentiment declaring that the more than $100 million inflows into spot Bitcoin ETFs on June 12 and a possible $500 million more from MicroStrategy being poured into BTC could provide the liquidity that the market needs.
“100m in inflows for the ETFs yesterday; let’s see if they show up again – especially now…..
