As a result of the Binance purchase, liquidity started to rise. . According to Coinmarketcap data, the total liquidity between the two goes up to 874. However, this isn’t the first time Binance has made a dip. The giant stock market also bought a amount of Bitcoin in January.
Investors seem emboldened as more Bitcoins are bought. Bitcoin and Ethereum have seen an almost 35% increase in trading volume in the last 24 hours, close to the levels at which the big drop started at the time of writing. Many analysts think that the expected decline in the stock markets will continue the losses in cryptocurrencies. The latest statements by the FED point to the continuation of the minimum 50 basis point rate hikes.
On the other hand, the FOMC minutes to be announced next month may ensure the continuation of high volatility. These minutes contain details of FOMC members’ views, concerns, and demands at upcoming meetings. The FOMC minutes released in January were the reason for the first big drop of the year.
Cryptocurrencies have experienced ups and downs over the years. Lows and highs are always difficult to detect. Investors should be aware of this fact and act according to their own risk profiles.