Bitcoin Bounces

Key Takeaways

Markets rebound sharply, with impressive price action across all major crypto sectors. On-chain and derivatives data point toward a combination of low liquidity, seller exhaustion, and short liquidations as the major catalysts for this price run. A disproportionate increase in price compared to realized cap suggests that low liquidity levels are exacerbating price movements. We review several events of the past week and discuss the major implications. Bottom Line: We remain bullish on the performance of Bitcoin and Ethereum through the end of this year but have yet to see sustaine...