Low Liquidity Drives Increased Volatility in the Crypto Market
TradFi:
The probability of a 25bps hike on June 14th increased from 10% last week to 20% this morning.
NASDAQ recently broke above yearly highs, indicating bullish momentum. A breakdown below its 50-day MA near 13,000, usually would indicate a bearish reversal pattern.
Bitcoin (BTC):
Bitcoin is still trading in a low liquidity environment which translates to higher volatility. Since January/February, we’ve noticed an uptick in intraday volatility for BTC/USD at 10min intervals. The market is facing a ton of volatility due to the lack of liquidity.
Ethereum (ETH):
ETH/BTC is currently pulling back from a level that may act as resistance in the short-term. As long as this ratio is capped by this declining trend line, we should expect ETH to underperform BTC.
Litecoin (LTC):
LTC is set to undergo a Halvening event in the next 70 days. Historically, Litecoin's past Halvenings have seen a peak in price around 50 days prior to the event. Failing to observe a substantial price surge suggests a lack of interest in preserving the network's security.
View the full report here:?Market Note — May 15,?2023
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Secure Digital Markets (SDM) is a digital asset brokerage operating on a global scale providing OTC cryptocurrency spot trading and crypto-backed lending services to institutional, high net-worth, and corporate clients across 60+ international markets. We offer a custom pathway to digital asset liquidity and off-exchange transactions. SDM streamlines the acquisition, storage, and liquidation of digital assets in a secure and compliant manner.
Our clients use our services to unlock liquidity and take advantage of current opportunities in the market. Visit our?website?today to learn more about our services and how SDM can help you to maximize your digital assets.