After hitting its 2023 high earlier this week on July 3, the world’s largest cryptocurrency Bitcoin (BTC) has been holding strongly above the $30,750 level. As of press time, BTC is trading at $30,853 with a market cap of just under $599 billion.
With the BTC price making a strong move above $30,000 last month, investor sentiment has turned bullish. According to CoinGlass data, the total value of open positions in the market remains at around $14.38 billion.
However, trading activity has decreased across different exchanges, with declines of 15-20 percent reported. This decline is also reflected in the liquidation volumes, with only $148,000 in positions liquidated in the past four hours and $7.2 million in the past 12 hours.
CoinGlass’ analysis of long and short positions indicates that long traders still have a slight advantage over short traders. But, when it comes to trader sentiment, there is a mixed response. A significant number of traders have a neutral stance, with no strong bullish or bearish sentiment.
Going further, liquidity could be a major challenge with fiat liquidity on the decline. Thus, it could weigh heavily on risk assets such as tech stocks and crypto. Speaking to CoinDesk, Decentral Park Capital’s Portfolio Manager Lewis Harland said:
