Narratives versus reality: What really drives Bitcoin and altcoin prices?

This analysis delves into the fast-moving nature of cryptocurrency prices influenced by headlines, emphasizing that liquidity is what sustains these prices. It discusses how data from ETFs, stablecoins, and on-chain flows truly impact price dynamics. Market data shows that when liquidity is available, price stability is easier to maintain. Conversely, during low liquidity phases, significant price volatility can occur, particularly with large capital inflows or outflows impacting prices. As ETFs gain acceptance as a primary asset class, market liquidity can enhance, fostering investor confidence. Ultimately, focusing on liquidity trends rather than getting swayed by news can lead to more informed trading decisions. Investors should build strategies considering liquidity conditions and timing their trades accordingly.