Market Makers Steer Stability Amid Bitcoin’s Bullish Rise
Key Insights:
- Market makers buffer Bitcoin against significant volatility from crypto whales’ large-scale acquisitions.
- Contrasting analyses stir debate over the impact of specific events on Bitcoin’s trading volume.
- Bitcoin’s bullish surge could lead to potential growth towards a $40,000 mark ahead of the halving event.
Cryptoquant CEO, Ki Young Ju, has recently shed light on the ever-evolving complexities of the Bitcoin market. He provides a fresh perspective on market makers’ significant role in stabilizing Bitcoin trading volume.
Crypto Whales vs Market Makers
Bitcoin’s ability to hold steady despite large purchases from $16,000 to $24,000 is a testament to the market’s resilience. According to Ju, market makers were the force behind the stability in the trading volume ratio between Bitcoin, stablecoin pairs, and USD pairs. He maintains that without these market makers, the ‘crypto whales’ actions would have led to severe fluctuations in the Bitcoin market.
Ju’s assertion was substantiated by a data chart correlating Bitcoin price and Stablecoin-USD spot trading ratios on leading crypto exchanges, Coinbase and Binance. The chart depicted considerable swings in Stablecoin and USD inflows at specific price points. According to Ju, this is a clear testament to the market maker’s influence in offsetting potential market volatility.
However, Ju’s viewpoint remained strong. A crypto analyst known as Few on Twitter objected to his conclusion. Few highlighted when Binance USDT pairs had zero fees and when the USDC depeg event occurred on Coinbase. These events, he argued, complicated the analysis provided by Ju.
Responding to Few, Ju agreed on the USDC depeg episode timing on Coinbase but maintained his stance on the effect of Binance inflows. Ju presented data from Kaiko to show the date variation between the USDT and the USD dominant period on Binance and the whale activity.
BTC-USDT Spread on Binance: (Kaiko)
Bitcoin’s Bullish Trend and the Upcoming Halving Event
Besides the debate, the Bitcoin market continues to display a solid bullish trend, which began in 2023. The currency has experienced some sideways trade after touching a new yearly high of $31,458. As of this writing, the price of Bitcoin stands at $30,803.72, having bounced from a local low of $29,868.
Consequently, many look forward to the upcoming Bitcoin halving event, hoping the price will break the yearly high and venture towards the $40,000 region. The latest surge has revived the bullish sentiment that has persisted since the beginning of the year.
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