Elon Musk – Bitcoin And Ethereum Merge INCOMING!! ETH/BTC Predictions & Analysis! Crypto News

The rally in Bitcoin that took the digital token to a fresh peak over the weekend could face a test from declining liquidity in the market for the largest cryptocurrency.

Bitcoin rose as high as $58,350 on Sunday before retreating to about $56,200 as of 2:30 p.m. in Tokyo on Monday. The token has roughly tripled in the past three months but its liquidity has deteriorated, according to Nikolaos Panigirtzoglou, a strategist at JPMorgan Chase & Co.

“Market liquidity is currently much lower for Bitcoin than in gold or the S&P 500, which implies that even small flows can have a large price impact,” he wrote in a note on Friday.

Such a backdrop opens up the possibility of sharp moves higher or lower in the cryptocurrency depending on the prevailing ardor for digital assets. Of late, even some of the token’s biggest backers appear surprised by its ascent. In a recent tweet, Elon Musk said Bitcoin prices “seem high,” having earlier called it a “less dumb” version of cash.

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