Notes 6/22: Bitcoin Price Continues to Hold Above $30,000

Even as liquidity in the bitcoin ecosystem continues to shrink and regulators continue to crack down on its operations, Bitcoin price rallied past the $30,000 mark yesterday. It continues to hold onto that position for a second straight day this morning. As of this writing, it is changing hands for $30,233.80, up 3.2% from its price a day earlier. On a weekly basis, the cryptocurrency’s price is up by 21%.

Making Profits at Binance.US

An increase in prices is good news for profits. And the biggest profits can be found at Binance.US.

The bitcoin/tether trading pair traded for prices as high as $138,000 yesterday. The ostensible reason for the price disparity was low liquidity. This morning, it has reversed course and is trading at a heavy discount. It is worthwhile to remember that Binance had planned a pause in USD withdrawals but hasn’t implemented it yet.

The exchange was charged by regulators earlier this year. It has continued to operate even though its market share in the US is down to just 1.5% of the total trading volume, according to data from Kaiko.

What lesson about crypto markets can we draw from these wild swings?

It is that crypto never fails. Even when the chips are down, there is never a shortage of profit-manufacturing…or profit-making opportunities in cryptocurrency markets.

Why Did Bitcoin Price Pop?

Per usual, there is no fundamental reason to explain the latest jump in bitcoin price. Most say it is because of the recent flurry of bitcoin ETF filings. Blackrock, the world’s biggest asset manager, is supposed to be the strongest candidate for approval because it has mentioned the possibility of a surveillance agreement to monitor crypto exchange activity. The Wisdom Tree filing, by the way, makes no mention of any such agreement.

But there is no guarantee that the SEC will approve the filing. In any case, a surveillance agreement requires the sharing of information about market trading activity, clearing activity, and customer identity. That requires disintermediation of currently integrated crypto exchanges. The chances that it will happen anytime soon are remote. Right now, exchanges like Coinbase are still embroiled in legal disputes with the agency.

A more probable reason could be large liquidations, resulting in a short squeeze. The total number of liquidations of bitcoin short positions exceeded $203 million, according to Coinglass data. There were $75 million in losses for bitcoin futures. The losses at Binance, the world’s biggest exchange by trading volume, were highest at $65 million.

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