Bad! Buy Liquidity Level Drops, BTC Position Threatened!

<p>&nbsp;"I'm not going to break through $32K anymore, I'm not going to go down."</p><p><br /></p><p>It is already known that the price of the cryptocurrency Bitcoin (BTC) is strengthening due to increased institutional interest, but the decrease in buy-side* liquidity has been across various digital assets including BTC and Ethereum (ETH).</p><p><br /></p><p>*The level on the chart where short sellers will have their stop position</p><p><br /></p><p>By observation, BTC holdings available on crypto exchanges decreased by 20% over the past year at 2.092 million implying that investors may want to sell or trade their BTC.</p><p><br /></p><p>In fact, the ETH exchange reserve also experienced a more drastic decrease with a deposit of around 40% at 12 million.</p><p><br /></p><p><br /></p><p>In addition to BTC and ETH, stablecoins that aim to maintain a stable value by being pegged to fiat currencies were also affected as their collective reserves recently shrank by more than 52% at 16.93 billion.</p><p><br /></p><p>According to Ki Young Ju, Chief Executive Officer (CEO) of Crypto Quant, the increasing buy-side liquidity despite the reduced stablecoin reserves can result in the crypto market reaching its lowest point when the ratio of stablecoin market capital or exchange holdings is high.</p><p><br /></p><p>While the current market capitalization of stablecoins in relation to BTC and ETH is reported to remain low, Ju commented further, adding that the transition period of stablecoins due to BUSD is not necessarily linked to declining buy-side liquidity.</p><p><br /></p><p>As of this writing, the price of BTC has plunged by 1.31% to $30,841 in the last 24 hours with a market cap of $598 billion but is still up 1.01% over the past week.</p><p><br /></p><p>While ETH slipped around 0.61% at $1,942 in the last 24 hours with a trading volume of $5 billion and Ripple (XRP) gained 0.43% at $0.49 and climbed 1.78% in the last seven days.</p>