Shifting Liquidity Dynamics And Exchange Roles<\/h2>\n
In a recent post on the CryptoQuant QuickTake platform titled \u201cCoinbase Dominance Remains Low,\u201d Mignolet examined the trajectory of Coinbase’s influence on Bitcoin’s price movements.<\/p>\n
The analyst highlighted that while Coinbase played a crucial role in the initial stages<\/a> of this year’s Bitcoin rally, its dominance has since diminished. This shift indicates a broader distribution of liquidity across the market, with Binance emerging as a significant player in sustaining the bullish momentum.<\/p>\n Coinbase dominance remains low<\/p>\n \u201cHowever, just before the rise in September-October, Coinbase dominance actually declined and has not significantly increased even now (red box).\u201d \u2013 By @mignoletkr<\/a><\/p>\n More details \ud83d\udc47https:\/\/t.co\/nmnPGuz3WK<\/a> pic.twitter.com\/mBSImH8MwD<\/a><\/p>\n \u2014 CryptoQuant.com (@cryptoquant_com) December 11, 2024<\/a><\/p><\/blockquote>\n Mignolet\u2019s analysis points to a critical observation: Coinbase’s dominance in spot trading has notably declined during the second phase<\/a> of Bitcoin’s current rally.<\/p>\n His analysis revealed that Bitcoin exchange-traded funds (ETFs) were approved earlier this year, spurring a surge in Coinbase\u2019s trading activity.<\/p>\n This influx of liquidity was instrumental in driving Bitcoin prices upward<\/a> and disrupting the traditional halving cycle expectations. However, as the rally progressed, Coinbase\u2019s influence waned.<\/p>\n The analyst emphasized that while Coinbase remains a pivotal source of liquidity, Binance has assumed a more prominent role in the current market phase. Mignolet wrote:<\/p>\n Let me reiterate: I\u2019m not saying that Coinbase liquidity is unimportant or insignificant. It\u2019s incredibly important. What I am highlighting is that there\u2019s an even more critical source of liquidity at play. = Binance<\/p>\n<\/blockquote>\n Notably, Binance\u2019s growing dominance suggests that liquidity flows from a wider array of participants, contributing to a somewhat decentralized and strong market structure.<\/p>\n This redistribution could indicate broader institutional and retail interest<\/a> in Bitcoin as traders and investors diversify their platforms.<\/p>\n Following a few days of correction dropping below the $95,000 price mark, Bitcoin has now seen a sudden rebound.<\/p>\n Particularly, at the time of writing, the asset has reclaimed the $100,000 price mark<\/a> with a current trading price of $100,625, marking a 4% increase in its price.<\/p>\n This increase in Bitcoin’s price has now brought the asset to a mere 3.6% decrease away from its all-time high above $103,000 established earlier this month.<\/p>\n Featured image created with DALL-E, Chart from TradingView<\/p>\n","protected":false},"excerpt":{"rendered":" While Bitcoin (BTC) has previously shown significant momentum in this market cycle, recent insights suggest that liquidity sources beyond Coinbase may be driving the trend. A CryptoQuant analyst, Mignolet, specifically provided a detailed analysis of Bitcoin’s market, shedding light on the role of major exchanges like Coinbase and Binance in the ongoing bull cycle. Related Reading: Anthony Scaramucci Foresees China Bitcoin Strategic Reserve In 2025 Shifting Liquidity Dynamics And Exchange Roles In a recent post on the CryptoQuant QuickTake platform titled \u201cCoinbase Dominance Remains Low,\u201d Mignolet examined the trajectory of Coinbase’s influence on Bitcoin’s price movements. The analyst highlighted that while Coinbase played a crucial role in the initial stages of this year’s Bitcoin rally, its dominance has since diminished. This shift indicates a broader distribution of liquidity across the market, with Binance emerging as a significant player in sustaining the bullish momentum. Coinbase dominance remains low \u201cHowever, just before the rise in September-October, Coinbase dominance actually declined and has not significantly increased even now (red box).\u201d \u2013 By @mignoletkr More details \ud83d\udc47https:\/\/t.co\/nmnPGuz3WK pic.twitter.com\/mBSImH8MwD \u2014 CryptoQuant.com (@cryptoquant_com) December 11, 2024 Mignolet\u2019s analysis points to a critical observation: Coinbase’s dominance in spot trading has notably declined during the second phase of Bitcoin’s current rally. His analysis revealed that Bitcoin exchange-traded funds (ETFs) were approved earlier this year, spurring a surge in Coinbase\u2019s trading activity. This influx of liquidity was instrumental in driving Bitcoin prices upward and disrupting the traditional halving cycle expectations. However, as the rally progressed, Coinbase\u2019s influence waned. The analyst emphasized that while Coinbase remains a pivotal source of liquidity, Binance has assumed a more prominent role in the current market phase. Mignolet wrote: Let me reiterate: I\u2019m not saying that Coinbase liquidity is unimportant or insignificant. It\u2019s incredibly important. What I am highlighting is that there\u2019s an even more critical source of liquidity at play. = Binance Notably, Binance\u2019s growing dominance suggests that liquidity flows from a wider array of participants, contributing to a somewhat decentralized and strong market structure. This redistribution could indicate broader institutional and retail interest in Bitcoin as traders and investors diversify their platforms. Bitcoin Sees Sharp Rebound Following a few days of correction dropping below the $95,000 price mark, Bitcoin has now seen a sudden rebound. Related Reading: As Bitcoin Trades Above $100K\u2014Analysts Reveal What Could Be Next Particularly, at the time of writing, the asset has reclaimed the $100,000 price mark with a current trading price of $100,625, marking a 4% increase in its price. This increase in Bitcoin’s price has now brought the asset to a mere 3.6% decrease away from its all-time high above $103,000 established earlier this month. Featured image created with DALL-E, Chart from TradingView<\/p>\n","protected":false},"author":580,"featured_media":661000,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[88240],"tags":[10768,428,1119,78790,1393,6664,10923],"class_list":["post-660936","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bitcoin-news","tag-binance","tag-bitcoin","tag-btc","tag-btcusdt","tag-coinbase","tag-crypto","tag-crypto-market"],"acf":[],"yoast_head":"\n\n
![\"Coinbase](\"https:\/\/i0.wp.com\/img.cryptoquant.com\/4739\/quicktake\/BLruS59t_0acd87f6ae5c986493a7c2432a65ca76b9b60b413f0f630d99db4b563f895155.png?resize=1280%2C720&ssl=1\")
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Bitcoin Sees Sharp Rebound<\/h2>\n