This weekend, the futures market for digital currencies saw increased activity, which helped to drive up the price of bitcoin.
As highlighted by Ki Young Jun of Crypto Quant, investors entered the market early on Saturday morning and bought bitcoin futures worth almost $4 billion.
This weekend, the futures market for digital currencies saw increased activity, which helped to drive up the price of bitcoin. According to data from TradingView, the most significant cryptocurrency’s price was $20,692 at 6:35 a.m. ET.
In other markets, Solana was up more than 30% over the previous day, while ether was up 7.7%. According to data given by Coinglass, the upward movement resulted in $449 million in short liquidations on January 14 – the largest level in months.
As highlighted by Ki Young Jun of Crypto Quant, investors entered the market early on Saturday morning and bought bitcoin futures worth almost $4 billion. Since new statistics issued by the U.S. Department of Labor suggested a slowdown in inflation, cryptocurrencies have been trading higher.
The closely watched consumer price index fell by 0.1% every month in December. According to Young Jun, the prolonged increases may have been caused by a wide range of cryptocurrency market participants pulling back. The activity of cryptocurrency brokerage companies and market makers has decreased in the wake of many bankruptcy filings, including Sam Bankman-Alameda Fried’s Research and BlockFi.
Market-making companies can contribute to reducing volatility during extreme market movements. As The Block has pointed out, such market participants have pushed back, which has caused a liquidity gap that might leave the market vulnerable to volatility spikes.
Young Jun wrote to The Block, “This might just be a coordinated effort to make a short squeeze when markets have thin liquidity.” He continued, “We’re close to the bottom for sure,” and predicted that the actual market recovery would begin by at least mid-2023.