Bitcoin

<p style="text-align: justify"><a href="https://en.coin-turk.com/political-ripple-of-cryptocurrencies-a-precursor-for-major-shifts-as-2024-approaches/" data-wpel-link="internal">Bitcoin</a> price has dropped below $27,300 at the time of writing this article. If there are any closures below $27,200, the losses can deepen. Investors started to believe that the market has started to recover after the tests at $28,000. However, due to weak volumes, rallies did not find support and the price is now turning.</p> 
<h2 style="text-align: justify" id="low-volumes-in-cryptocurrencies">Low Volumes in Cryptocurrencies</h2> 
<p style="text-align: justify">It is easy to create waves in a pool, but you cannot do the same in a lake. Cryptocurrencies flow from the sea to the lake and eventually to the pool through order books on cryptocurrency exchanges. In the midst of shallow liquidity, speculative traders have gained power and can temporarily determine the market price with high-volume purchases. This leads to interesting price increases.</p> 
<p style="text-align: justify"><img decoding="async" class="size-full wp-image-264794 aligncenter" src="https://coin-turk.com/wp-content/uploads/2023/10/Binance-Likidite.png" alt="" width="1502" height="685"></p> 
<p style="text-align: justify">For example, today, $50 million in sales on the <a href="https://en.coin-turk.com/binances-collaboration-with-thai-authorities-leads-to-arrest-of-fraud-gang-and-seizure-of-277-million-worth-of-funds/" data-wpel-link="internal">Binance</a> exchange would be enough for the market price to drop to $25,800. With $41 million in purchases, the price can rise above $29,000.</p> 
<p style="text-align: justify">Another notable detail in the above chart is that volumes have significantly decreased since March. The withdrawal of two major market makers, June and Jump, from the exchanges during this period due to regulatory risks has caused volumes to shrink.</p> 
<p style="text-align: justify">Although exchanges have started working with different market makers due to the decrease in volumes caused by the escape of market makers, they had to delist many altcoins due to the increasing cost of this situation.</p> 
<h2 style="text-align: justify" id="why-can-t-cryptocurrencies-rise">Why Can’t Cryptocurrencies Rise?</h2> 
<p style="text-align: justify">We mentioned shallow liquidity earlier. Investors have moved away from the market and started to turn to alternatives. For example, we can give the example of BIST in Turkey. While millions of new investors enter the stock markets, the number of active investors in cryptocurrencies has rapidly decreased. So, what are the reasons for the stagnation in cryptocurrencies?</p> 
<ul style="text-align: justify"> 
 <li>The possibility of high US inflation data to be announced this week.</li> 
 <li>The possibility of the strong employment data from last week pushing the Fed to tighten further.</li> 
 <li>The impact of the increase in oil prices on inflation and the possibility of this increase due to geopolitical problems. For example, a possible war between Israel and Iran can cause scarcity due to fuel production from this country, which is in the top 10.</li> 
 <li>Saudi Arabia and Russia’s decision to continue production cuts with the increase in oil prices.</li> 
 <li>Regulatory risks regarding cryptocurrencies.</li> 
 <li>The possibility of the US Department of Justice filing a lawsuit against the Binance exchange. The investigation is ongoing.</li> 
 <li>The fear that the launch performance of futures ETH ETFs last week will not create demand for spot <a href="https://en.coin-turk.com/binance-relaunches-the-bitcoin-button-game-amidst-challenges/" data-wpel-link="internal">BTC</a> ETF.</li> 
 <li>The concern that the Fed will only make a 50bp interest rate cut next year according to the dot plot.</li> 
 <li>The pessimistic statements made by Fed members in the last 2 weeks. Expectations for a rate hike are increasing at the November 1 meeting.</li> 
</ul> 
<p style="text-align: justify">There can be many more reasons. All of these can be counted among the reasons that feed the lack of volume. In addition, this negativity in a volumeless environment has created a lasting disbelief in the markets. The reason why the short positions opened at the $28,300 resistance are largely profitable is also due to this.</p> 
<p style="text-align: justify">Investors should diversify their risks during this process and examine the options they see as promising in the long term by conducting their own research.</p> 
<div class="sorumluluk_reddi" style="text-align: justify">
 <strong>Disclaimer:</strong> The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their transactions based on their own research.
</div> Continue Reading: <a href="https://en.coin-turk.com/low-volumes-in-crypto-markets-and-reasons-behind-the-stagnation/" data-wpel-link="internal">https://en.coin-turk.com/low-volumes-in-crypto-markets-and-reasons-behind-the-stagnation/</a>

Low Volumes in Crypto Markets and Reasons Behind the Stagnation

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