Bitcoin was a winner during the U.S. banking crisis, but illiquidity prevents it from being a USD edge

As a result, liquidity on the BTC-USDT pair on Binance, the most liquid pair in crypto, dropped 70% overnight. The only zero-fee pair is now BTC-TUSD. If liquidity does not flow into that pair, order books could be depleted even further over the coming weeks.

What this all means is that it now takes less and less “size” to move the price of BTC, potentially causing volatility as more traders are able to influence prices. Thankfully for investors, the banking confidence crisis led to a surge of buy pressure, boosting the price upwards so far.

However, the lack of support to the upside also applies to the downside, meaning we need to be just as cautious of an outsized move downwards in the coming weeks. All this to say it’s too early for a bitcoin maxi victory lap.