XRP liquidity on Binance drops, raising volatility risks
XRP has seen an increased liquidity crunch on Binance, setting up for a potential price shift.
- XRP on Binance. XRP has recorded a sharp decline in trading liquidity on Binance.
XRP has suffered a dip in trading activity on the world’s largest cryptocurrency exchange, Binance. As per a recent update shared by a chartist, Steph is Crypto, XRP’s 30-day liquidity index on Binance has dropped to 0.097 from over 3 points during the 2022-2024 trading cycles.
Notably, a sharp drop in the liquidity index signals thinner order books and leaves an asset’s price prone to volatility. That is, there are fewer buy and sell orders, and the market depth is thinner than in previous market cycles.
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- Less trading. The drop signals thinner order books and reduced market depth.
The continued volatility of XRP’s price has triggered caution among traders. This has left fewer participants in the market space that are actively trading the coin. This development places XRP in a pivotal position for a possible uptick in price.
Generally, when liquidity is high, large orders get absorbed easily, and price movement is slower and more gradual. However, with XRP’s liquidity index on Binance far below 1 point, a large buy order can quickly accommodate the existing sell order.
This can lead to a price spike, and XRP can witness a positive shift in price momentum. In order for this to happen, XRP whales need to step in and accumulate a large amount of XRP at the current reduced price. It is only then that the coin could rapidly gain in price.
SHIB burn rate surges as demand signals potential recovery
Shiba Inu has shown mixed price action recently, but on-chain metrics indicate a possible recovery forming.
- Up 53,954%. SHIB burn rate surged by five figures in the past 24 hours.
Shiba Inu has continued to see mixed price actions, yet its on-chain metrics over the past day suggest that the asset may be preparing for a major recovery. While Shiba Inu has finally moved to the bullish side after multiple days of trading in deep red territory, the market has seen its burn rate follow with a massive surge of five figures, according to data from Shibburn.
- SHIB rice up 6%. The price uptick appears linked to growing demand.
Following this bullish momentum, Shiba Inu has flipped positive, surging by 6.35% over the last 24 hours, according to data from CoinMarketCap.
With Shiba Inu now trading around $0.000005639, the surge in the SHIB price appears to have been driven by rising demand spurred by the sudden switch in investor sentiment seen across the broad crypto market.
The unexpected increase in the demand for Shiba Inu is evident in the asset’s exchange flow, which shows that reserves from all supported exchanges have decreased substantially over the last day.
With about 80.4 trillion SHIB currently sitting on all exchanges as of March 4, traders have moved out more tokens from exchanges over the last day, signaling an increase in buying activities.
Rockefeller boosts stake in Bitcoin treasury firm Strategy by 146%
Rockefeller Capital Management disclosed a massive 146% increase in its stake in Strategy.
- Up 148%. $198 billion Rockefeller expanded its MSTR holdings.
Institutional adoption of Bitcoin proxy stocks continues to accelerate at a breakneck pace. According to a recent filing, legacy wealth manager Rockefeller Capital Management, which oversees a massive $198 billion in assets, has aggressively expanded its position in the Bitcoin treasury company Strategy Inc. (MSTR).
The firm increased its holdings by a rather impressive 146%. It currently holds a total of 198,283 shares. This position is worth approximately $28 million at press time.
- Institutional demand. Rockefeller Capital Management, which oversees about $198 billion in assets, expanded its MSTR holdings by 146%.
Rockefeller is far from the only major player heavily accumulating MSTR. Over the past two weeks, a flurry of institutional filings and market data have highlighted an intense wave of interest in the Bitcoin treasury firm.
In late February, Europe’s largest asset manager with $2.8 trillion under management disclosed a massive 373% increase in its MSTR position.
Amundi bought an additional 3.77 million shares, bringing its total holdings to a staggering 4.79 million shares ($641 million). A day prior, South Korea’s National Pension Service (NPS), the world’s third-largest pension fund, boosted its position by 20% to 614,409 shares ($83.2 million).