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According to trader Brian Krogsgard, "Liquidity" has been the biggest driver of Bitcoin's price over the past year

Published on

February 28, 2023
Read Time:2 Minute, 10 Second

Cointelegraph's Crypto Buying and selling Secrets and techniques Podcast has launched Episode 6, which covers a variety of content material prone to spark curiosity from cryptocurrency merchants. Visitor of this episode is Brian Krogsgard, often known as Ledgerstatus on Twitter. Krogsgard is a dealer and one of many co-founders of Flip.xyz, a non-fungible token (NFT) platform. He's additionally a podcaster within the crypto house.

Among the many questions requested throughout the Feb. 16 taping, presenter Benjamin Pirus requested Krogsgard to offer his opinion on what he thinks has most impacted the value of Bitcoin (BTC) over the previous 12 months. "Liquidity," he replied.

“Folks simply haven't got money reserves for quite a lot of causes. They've counterparties which have gone bankrupt and that may have pressured them to lose cash. They left cash hanging in locations that had been going bankrupt. Misplaced entry to them, misplaced from buying and selling, misplaced from taxes, no matter.”

"These are all liquidity challenges and also you want liquidity for the healthiest of markets and that has been a problem," he added. Within the midst of the runaway prepare that was the 2022 crypto bear market, important turmoil erupted in house. A number of cryptocurrency firms have failed, together with the likes of crypto change big FTX.

"I'd truly say that the issues with bitcoin had been there a lot earlier as a result of we noticed at FTX that there was a large bitcoin debt restructuring," Krogsgard continued. "Rehypothecation" happens when firms use prospects' collateral for different actions, after to Investopedia. The collapse of FTX in November 2022 sparked quite a few headlines, together with allegations of misuse of shopper belongings by FTX and sister firm Alameda Analysis.

“So, the bitcoin individuals who thought that they had it on FTX weren't there, and FTX offered it to do different issues. And this re-hypothecation has been a drag on Bitcoin's value even in a bull market. And now that we're having liquidity points, it was only a fixed sort of pricing strain and it was difficult for a 12 months and some extra years to return.”

Krogsgard shared his ideas and opinions on a number of different factors all through the episode and in addition chatted about his background.

Watch these and different episodes from Cointelegraph's Crypto Buying and selling Secrets and techniques podcast on the Cointelegraph podcast web page, Apple Podcasts, Spotify, Google Podcasts or Turn on.

The views, ideas, and opinions expressed herein are solely these of the authors and don't essentially replicate or symbolize the views and opinions of Cointelegraph.

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Azeez Mustafa
Azeez began his FinTech career path in 2008 after growing interest and intrigue about market wizards and how they managed to become victorious on the battlefield of the financial world. After a decade of learning, reading and training the ins and outs of the industry, he’s now a sought after trading professional, technical/currency analyst and funds manager – as well as an author.
Last Updated : February 28, 2023
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