[2018-11-22] Bakkt and Fidelity Could Solve Bitcoin’s Liquidity Issue

[Lmaooo]

Susquehanna Exec: Bakkt and Fidelity Could Solve Bitcoin’s Liquidity Issue

Over the past week, the price of Bitcoin has dropped by more than 35 percent, and the majority of analysts in the crypto space have shared the sentiment that the crash was triggered by the contentious hard fork of Bitcoin Cash.

According to Bart Smith, the head of digital asset at trading giant Susquehanna, a lack of liquidity in Bitcoin markets allowed the dominant cryptocurrency to be vulnerable to a large sell-off caused by the Bitcoin Cash hash power war and hard fork.

In the months to come, Smith explained that the entrance of Fidelity, ICE, and Bakkt into the cryptocurrency market could increase the liquidity of BTC and lead to a rise in capital in the space to soak up big sell-offs.
Importance of Fidelity and Bakkt

Currently, it is fairly difficult for an average trader to invest in the cryptocurrency exchange market through trading platforms like Coinbase and Bitstamp. Investors are required to hand in photocopies of government-issued documents, undergo rigorous Know Your Customer (KYC) processes, and comply with policies enforced by exchanges.

    As #bitcoin plunges and nears $4,000, Wall Street's Crypto King Bart Smith of Susquehanna says he's still a long-term believer in the cryptocurrency. pic.twitter.com/SzsL9tZAhB

    — CNBC's Fast Money (@CNBCFastMoney) November 20, 2018

CCN | https://www.ccn.com/susquehanna-exec-bakkt-and-fidelity-could-solve-bitcoins-liquidity-issue/

[BitHodler]

It's not easy to work around the lack of liquidity, because even with Bakkt and Fidelity, the spot exchanges are setting the prices, and they are the main reason there is no sufficient liquidity available because of their shady nature.

Wiring fiat to an exchange isn't difficult at all. The problem is that wiring fiat to an exchange is similar to playing Russian roulette with your funds, which is the main point. Today it's there, tomorrow it might be gone.

Talking about Fidelity, do we have an actual confirmation of them entering the crypto space? Most of what I have read is about them offering custody services for various crypto assets, but there isn't much to find about actual trading.

[gentlemand]

It's not easy to work around the lack of liquidity, because even with Bakkt and Fidelity, the spot exchanges are setting the prices, and they are the main reason there is no sufficient liquidity available because of their shady nature.

I would say Bitmex is hoovering everything up at present. Why would the usual degenerates bother with somewhere like Bitstamp? What this market could do with most of all is the orderly exit of USDT and Bitmex's domination.