Expectations of increased U.S. dollar liquidity to support the banking sector following a string of forced closures has helped bitcoin (BTC) rally, but other factors are also at play, Morgan Stanley (MS) said in a research report Sunday.
Bitcoin, the world’s largest cryptocurrency by market cap, has gained 69% year-to-date.
“Bitcoin trading order book liquidity is at the lowest level in a year, meaning lower volumes can drive larger price moves than before,” analysts led by Sheena Shah wrote.
Traders on Binance now set the daily price for bitcoin with the crypto exchange’s share of trading volume reaching 80%, the report said.
(By Will Canny)
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