VanEck executives: advise to avoid creating large orders as Bitcoin liquidity evaporates

VanEck digital asset strategist Gabor Gurbacs said that the liquidity of Bitcoin in the industry is evaporating due to the sharp increase in the bid-ask spread in the $ 10 million Bitcoin market transaction. The chart shows that this is the most significant spread over the past 3 months, which again indicates the existence of extreme volatility. Gurbacs also believes that in the current situation, the market may reverse, which is what investors are worried about when buying larger market orders. He therefore suggested that it would be best to avoid creating large buy / sell orders in this industry. When talking about the $ 10 million bid-ask spread, Gurbacs said that some market makers and OTC counters usually buy such high orders because $ 10 million will quickly accumulate in small repetitive transactions. A higher buy / sell order has a similar effect. In addition, Gurbacs mentioned that in the early days of the crypto industry, such wide B / O spreads were rare, because in the past, liquidity was very low. Before 2017, the bitcoin market was also relatively small, resulting in a decline in liquidity. In terms of clearing, BitMEX has a short Bitcoin position of 21.93 million, which indicates that traders are leaving the market and re-entering the market at a lower price. However, as of press time, the market is extremely volatile, which may affect the market direction in the near future.