{"id":92552,"date":"2025-12-23T17:37:05","date_gmt":"2025-12-23T14:37:05","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=92552"},"modified":"2025-12-24T09:47:56","modified_gmt":"2025-12-24T06:47:56","slug":"expert-warns-of-a-liquidity-drought-in-crypto","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/expert-warns-of-a-liquidity-drought-in-crypto\/","title":{"rendered":"Expert Declares Cryptocurrency Market Liquidity Is Drying Up"},"content":{"rendered":"<p>While other markets climb, cryptocurrencies continue to move sideways amid a near-total absence of liquidity. According to the co-founder of the ETH Strategy protocol, known as Clouted, something \u201cbroke\u201d after the <a href=\"https:\/\/forklog.com\/en\/news\/whales-adl-and-the-end-of-the-bull-what-really-happened-on-cryptos-black-saturday-2\">October sell-off<\/a>.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">something absolutely fucking broke and some serious shit is going on since october 10 and we deserve to know real answers not just speculations and rumors<\/p>\n<p>there is no liquidity and no bid on crypto since and non stop selling <a href=\"https:\/\/t.co\/l6x9B0wt7W\">pic.twitter.com\/l6x9B0wt7W<\/a><\/p>\n<p>\u2014 Clouted (@CloutedMind) <a href=\"https:\/\/twitter.com\/CloutedMind\/status\/2003195873329844334?ref_src=twsrc%5Etfw\">December 22, 2025<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cSomething serious has been going on since October 10. We deserve truthful answers, not just speculation and rumours. Since then there has been no liquidity and no bid in crypto, only continuous selling,\u201d he wrote. <\/em><\/p>\n<\/blockquote>\n<p>The expert stressed that quantitative easing has returned, but flows into digital assets have not. Meanwhile, equities and precious metals are in the midst of another rally. <\/p>\n<p>Over the past 24 hours the S&amp;P 500 <a href=\"https:\/\/finance.yahoo.com\/quote\/%5EGSPC\/\">rose<\/a> almost 0.64%, while the Nasdaq Composite <a href=\"https:\/\/ru.tradingview.com\/symbols\/NASDAQ-IXIC\/\">added<\/a> 0.52%. Analysts at The Kobeissi Letter pointed to strong investor appetite for US stocks. <\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Investors are extremely bullish:<\/p>\n<p>Bank of America&#8217;s Bull &#038; Bear Indicator is up +0.6 points over the last few trading days, to 8.5, re-entering extreme bull territory.<\/p>\n<p>The index measures hedge fund and fund manager positioning, equity and bond flows, and market breadth.\u2026 <a href=\"https:\/\/t.co\/bY7yJn8tDV\">pic.twitter.com\/bY7yJn8tDV<\/a><\/p>\n<p>\u2014 The Kobeissi Letter (@KobeissiLetter) <a href=\"https:\/\/twitter.com\/KobeissiLetter\/status\/2003119632618487925?ref_src=twsrc%5Etfw\">December 22, 2025<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>On December 23rd, gold set a fresh record high at $4500 per ounce. The metal is up 70% year to date. <\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">BREAKING: Gold futures surge above $4,500\/oz for the first time in history, now up more than +70% this year.<\/p>\n<p>Gold is now on track for its biggest yearly gain since 1979. <a href=\"https:\/\/t.co\/m8hY2oxZmf\">pic.twitter.com\/m8hY2oxZmf<\/a><\/p>\n<p>\u2014 The Kobeissi Letter (@KobeissiLetter) <a href=\"https:\/\/twitter.com\/KobeissiLetter\/status\/2003285554289312216?ref_src=twsrc%5Etfw\">December 23, 2025<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Crypto tells the opposite story: over the past 24 hours bitcoin fell 2.7%. At the time of writing it trades around $87,600, down 6.3% year on year.<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"599\" src=\"https:\/\/forklog.com\/wp-content\/uploads\/img-884c8a962ce18ba1-1716756497099865-1024x599.png\" alt=\"image\" class=\"wp-image-272411\" srcset=\"https:\/\/forklog.com\/wp-content\/uploads\/img-884c8a962ce18ba1-1716756497099865-1024x599.png 1024w, https:\/\/forklog.com\/wp-content\/uploads\/img-884c8a962ce18ba1-1716756497099865-300x175.png 300w, https:\/\/forklog.com\/wp-content\/uploads\/img-884c8a962ce18ba1-1716756497099865-768x449.png 768w, https:\/\/forklog.com\/wp-content\/uploads\/img-884c8a962ce18ba1-1716756497099865-1536x899.png 1536w, https:\/\/forklog.com\/wp-content\/uploads\/img-884c8a962ce18ba1-1716756497099865.png 2048w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">Hourly BTC\/USDT chart on Binance. Source: <a href=\"https:\/\/ru.tradingview.com\/chart\/?symbol=BINANCE%3ABTCUSDT\">TradingView<\/a>. <\/figcaption><\/figure>\n<p>Ethereum has again slipped below the psychologically important $3000 level. Every coin in the top ten by market value is in the red. <\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"669\" src=\"https:\/\/forklog.com\/wp-content\/uploads\/img-34cbec3af78da344-1716768285856663-1024x669.png\" alt=\"image\" class=\"wp-image-272412\" srcset=\"https:\/\/forklog.com\/wp-content\/uploads\/img-34cbec3af78da344-1716768285856663-1024x669.png 1024w, https:\/\/forklog.com\/wp-content\/uploads\/img-34cbec3af78da344-1716768285856663-300x196.png 300w, https:\/\/forklog.com\/wp-content\/uploads\/img-34cbec3af78da344-1716768285856663-768x501.png 768w, https:\/\/forklog.com\/wp-content\/uploads\/img-34cbec3af78da344-1716768285856663-1536x1003.png 1536w, https:\/\/forklog.com\/wp-content\/uploads\/img-34cbec3af78da344-1716768285856663.png 2048w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">Source: <a href=\"https:\/\/www.coingecko.com\/\">CoinGecko<\/a>. <\/figcaption><\/figure>\n<p>The total value of the digital-asset market fell 2.3% in a day to $3.05trn. <\/p>\n<p>Clouted pointed to a paradox: the global <span data-descr=\"English: debasement trade\" class=\"old_tooltip\">\u201cdebasement trade\u201d<\/span> in fiat is gathering pace, yet cryptocurrencies\u2014supposedly among the principal hedges\u2014remain on a downward track. <\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cHow this is even possible for an asset class whose hedge against devaluation is almost its only key value proposition is beyond me,\u201d he noted. <\/em><\/p>\n<\/blockquote>\n<p>QCP analysts also <a href=\"https:\/\/www.qcpgroup.com\/insights\/us-colour-2\/\">flagged<\/a> thinning liquidity, attributing it to traders closing positions ahead of the holidays. <\/p>\n<p>Open interest in bitcoin futures on major exchanges fell by $3bn overnight, and by around $2bn in Ethereum-linked products. <\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cAlthough leverage has come down, the reduction in market depth means squeeze risk in either direction remains elevated. Historically, bitcoin tends to swing 5\u20137% over the Christmas period,\u201d the experts added. <\/em><\/p>\n<\/blockquote>\n<h2 class=\"wp-block-heading\">Why is bitcoin falling? <\/h2>\n<p>CryptoQuant analysts explained that bitcoin\u2019s correlation with the Nasdaq began to diverge in August. Its correlation with gold turned negative around July.<\/p>\n<blockquote class=\"twitter-tweet\" data-conversation=\"none\">\n<p lang=\"en\" dir=\"ltr\">Bitcoin, however, is lagging.<\/p>\n<p>\u2014 BTC &#038; Nasdaq correlation began diverging around August<\/p>\n<p>\u2014 BTC &#038; Gold correlation has turned negative since July<\/p>\n<p>Bitcoin is no longer moving in sync with either tech stocks or hard money. <a href=\"https:\/\/t.co\/mBHrzkNGWg\">pic.twitter.com\/mBHrzkNGWg<\/a><\/p>\n<p>\u2014 CryptoQuant.com (@cryptoquant_com) <a href=\"https:\/\/twitter.com\/cryptoquant_com\/status\/2003423837271232541?ref_src=twsrc%5Etfw\">December 23, 2025<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cBitcoin is no longer moving in sync with either tech stocks or safe-haven assets,\u201d they noted. <\/em><\/p>\n<\/blockquote>\n<p>They said large holders have been weighing on \u201cdigital gold\u201d by continuing to sell; the steady whale supply has not abated since October. <\/p>\n<p>In November, spot bitcoin-<a href=\"https:\/\/forklog.com\/en\/news\/what-is-a-cryptocurrency-etf\">ETF<\/a> outflows totalled $3.4bn; in December to date, $440m. <\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"522\" src=\"https:\/\/forklog.com\/wp-content\/uploads\/img-28917b16aef3daac-1716811476275372-1024x522.png\" alt=\"image\" class=\"wp-image-272413\" srcset=\"https:\/\/forklog.com\/wp-content\/uploads\/img-28917b16aef3daac-1716811476275372-1024x522.png 1024w, https:\/\/forklog.com\/wp-content\/uploads\/img-28917b16aef3daac-1716811476275372-300x153.png 300w, https:\/\/forklog.com\/wp-content\/uploads\/img-28917b16aef3daac-1716811476275372-768x392.png 768w, https:\/\/forklog.com\/wp-content\/uploads\/img-28917b16aef3daac-1716811476275372-1536x783.png 1536w, https:\/\/forklog.com\/wp-content\/uploads\/img-28917b16aef3daac-1716811476275372.png 1832w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">Flows in spot bitcoin ETFs. Source: SoSoValue. <\/figcaption><\/figure>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cCapital is rotating into safe instruments like gold and silver, while equities are rising on the frenzy around AI companies. Bitcoin is squeezed: on one side, seller pressure; on the other, a lack of strong demand for risk assets,\u201d the specialists said. <\/em><\/p>\n<\/blockquote>\n<p>Realised losses among large investors were one driver of the drop in bitcoin from $124,000 to $84,000. But their selling now appears to have run its course, CryptoQuant said. <\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Whale Capitulation on Pause.<\/p>\n<p>Realized losses from new whales significantly impacted the price drop from $124K to $84K. <\/p>\n<p>Since the recent low, these losses have declined and are now flat. <a href=\"https:\/\/t.co\/cCn5YsUxX8\">pic.twitter.com\/cCn5YsUxX8<\/a><\/p>\n<p>\u2014 CryptoQuant.com (@cryptoquant_com) <a href=\"https:\/\/twitter.com\/cryptoquant_com\/status\/2003451926663561445?ref_src=twsrc%5Etfw\">December 23, 2025<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>QCP added that heightened volatility may also stem from the 26 December expiry of $28.5bn of options on Deribit. The venue\u2019s commercial director, \u0416\u0430\u043d-\u0414\u0430\u0432\u0438\u0434 \u041f\u0435\u043a\u0438\u043d\u044c\u043e, <a href=\"https:\/\/forklog.com\/en\/news\/analyst-predicts-no-altcoin-season-in-2026\">stressed<\/a> that this is twice last year\u2019s level. <\/p>\n<p>Open-interest positioning shows two focal points: $85,000 strikes and $100,000 puts. <\/p>\n<p>Beyond options, tax-loss harvesting in the holiday period may also weigh on price, as investors lock in losses before the tax year ends on December 31st, QCP explained. <\/p>\n<h2 class=\"wp-block-heading\">What next? <\/h2>\n<p>\u041f\u0435\u043a\u0438\u043d\u044c\u043e described the structure as a sign of \u201cresidual optimism\u201d about a traditional <a href=\"https:\/\/forklog.com\/en\/news\/analysts-weigh-the-odds-of-a-santa-claus-rally\">\u201cSanta Claus rally\u201d<\/a>, albeit with low apparent conviction. The move is echoed in average funding rates, which have risen from 0.04% to 0.09%.<\/p>\n<p>According to the Deribit representative, the rise indicates a resumption of leveraged long positioning despite a marked deterioration in market depth. <\/p>\n<p>Experts agreed that price moves during Christmas week are often technical. Historically they tend to mean-revert in January, when full liquidity and participation return. <\/p>\n<p>Analyst Micha\u00ebl van de Poppe called bitcoin\u2019s bounce off $90,000 \u201cnot a bad sign for now\u201d. He said traders now want to turn $86,000 into support, which would \u201cprovide sufficient grounds to continue battling key resistance areas\u201d. <\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\"><a href=\"https:\/\/twitter.com\/hashtag\/Bitcoin?src=hash&#038;ref_src=twsrc%5Etfw\">#Bitcoin<\/a> rejects at a crucial resistance zone and continues the sideways price action. <\/p>\n<p>That&#8217;s unfortunate, but it remains to be building and upwards trend on the lower timeframes.<\/p>\n<p>Rejection at $90K isn&#8217;t a bad sign, as of yet. <\/p>\n<p>The markets clearly want $86K to hold as\u2026 <a href=\"https:\/\/t.co\/iBG0xqPQ7o\">pic.twitter.com\/iBG0xqPQ7o<\/a><\/p>\n<p>\u2014 Micha\u00ebl van de Poppe (@CryptoMichNL) <a href=\"https:\/\/twitter.com\/CryptoMichNL\/status\/2003386344509452511?ref_src=twsrc%5Etfw\">December 23, 2025<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>He called the crypto market\u2019s underperformance \u201ctemporary\u201d. <\/p>\n<p>Earlier, VanEck specialists <a href=\"https:\/\/forklog.com\/en\/news\/vaneck-highlights-miner-capitulation-and-potential-bitcoin-bottom\">pointed<\/a> to miner capitulation and a possible bitcoin bottom. <\/p>\n","protected":false},"excerpt":{"rendered":"<p>According to ETH Strategy co-founder Clouted, something \u201cbroke\u201d in crypto after the October sell-off.<\/p>\n","protected":false},"author":1,"featured_media":92553,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"Analysts outline why bitcoin is falling and sketch the near-term outlook","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[480,1205,46,1138,1326],"class_list":["post-92552","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-bitcoin-price","tag-cryptoquant","tag-ethereum","tag-opinions","tag-qcp-capital"],"aioseo_notices":[],"amp_enabled":true,"views":"143","promo_type":"1","layout_type":"1","short_excerpt":"Analysts outline why bitcoin is falling and sketch the near-term outlook","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/92552","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=92552"}],"version-history":[{"count":2,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/92552\/revisions"}],"predecessor-version":[{"id":92567,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/92552\/revisions\/92567"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/92553"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=92552"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=92552"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=92552"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}