Crypto Whales Stay Away: Low Liquidity Keeps Bitcoin Above $17K

• Bitcoin (BTC) is trading steadily above $17,000 ahead of an expected hawkish speech by Federal Reserve President Jerome Powell.
• Low liquidity means large buy and sell orders can significantly affect bitcoin’s price, making it difficult for crypto whales to enter the market.
• IDX Digital Assets CIO Ben McMillan joins “First Mover” to discuss the recent price actions and why crypto whales are staying on the sidelines of the bitcoin market.

Bitcoin (BTC) is trading steadily above $17,000 as optimism around a risk reset in traditional markets builds. Despite this, large traders, often referred to as “whales,” are staying on the sidelines of the bitcoin market due to the lack of liquidity in the market. This means that large buy and sell orders can have a significant impact on the price of the coin, making it difficult for whales to enter the market without significantly affecting the price.

To discuss the recent price actions and why crypto whales are staying away from the market, IDX Digital Assets CIO Ben McMillan recently joined “First Mover” to provide some insights. McMillan said that bitcoin is currently in a “perfect storm” of circumstances, with the coin being “caught between a lot of different macro risk events such as the upcoming speech by Federal Reserve President Jerome Powell.” He believes that Powell’s speech could have a significant impact on the price of bitcoin and the market’s overall sentiment.

McMillan further noted that the low liquidity in the bitcoin market is a major factor that is keeping whales away. He said that “large orders can easily move the price” as the market is relatively illiquid, so it would be difficult for whales to enter the market without significantly affecting the price. He added that “whales are very aware of this and are likely to wait for the price to consolidate before entering the market.”

McMillan also highlighted the importance of having a good risk management strategy in place when it comes to trading bitcoin. He said that “it is important to be aware of the risks involved and to only take positions that you are comfortable with.” He believes that having a good risk management strategy in place is key to navigating the current market environment.

Overall, it appears that the low liquidity in the bitcoin market is preventing whales from entering the market. This has caused the price of the coin to remain relatively stable and has allowed it to trade steadily above $17,000. It will be interesting to see how the market reacts to Powell’s speech and whether this will be the catalyst that draws crypto whales into the market. Until then, traders are advised to maintain a good risk management strategy and be aware of the risks involved when trading bitcoin.