This statement might sound surprising, but it's true.
Many people emphasize Coinbase and Bitcoin ETF, giving them significant attention.
Yes, the massive liquidity flowing into these platforms cannot and should not be ignored. And I’ve never disregarded their importance.
However, when looking at Coinbase spot dominance, it’s clear that it isn’t leading the second bull cycle.
After Bitcoin ETF were approved in January this year, prices rose alongside an increase in Coinbase dominance (blue box).
In that phase, Coinbase indeed led the market, which disrupted the typical halving cycle patterns many had expected.
Now, we are in the second phase of this rally.
However, just before the rise in September-October, Coinbase dominance actually declined and has not significantly increased even now.
(Red box)
So, is Coinbase liquidity really driving this rally?
Let me reiterate: I’m not saying that Coinbase liquidity is unimportant or insignificant. It’s incredibly important.
What I am highlighting is that there’s an even more critical source of liquidity at play.
= Binance
Written by Mignolet