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"Black Swan" Author Points to Decreased Bitcoin Liquidity as Red Flag for Investors

Mon, 03/27/2023 - 19:58
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Alex Dovbnya
Acclaimed "Black Swan" author Nassim Nicholas Taleb has sounded the alarm on the sustainability of Bitcoin's recent rally, citing a significant drop in liquidity as a potential warning sign for investors
"Black Swan" Author Points to Decreased Bitcoin Liquidity as Red Flag for Investors
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Nassim Nicholas Taleb, the acclaimed author of "The Black Swan," has raised concerns about the sustainability of Bitcoin's recent rally, pointing to a severe drop in liquidity as a potential red flag for investors. 

Despite the cryptocurrency's impressive double-digit gains this year, Taleb's analysis suggests that the market may be on shaky ground, with liquidity levels in crypto markets hitting a 10-month low.

The decline in liquidity has been exacerbated by recent banking fears, with US exchanges hit the hardest due to the closure of USD payment rails and crypto banks. Market makers in the region are facing unprecedented challenges to their operations. Spreads for USD pairs have displayed a similar trend, suffering increased volatility as a result of uncertainty in the US. 

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Taleb has been a vocal critic of cryptocurrencies in the past, frequently highlighting what he perceives as inherent flaws in the crypto concept. In an earlier tweet, Taleb scoffed at a headline reporting a drop in Bitcoin's price due to uncertainty, arguing that it contradicted claims that the cryptocurrency is "antifragile." 

The author has also expressed gratitude for the messages he's received from individuals who claim he saved them from investing in Bitcoin, which they believe would have led to significant losses.

Despite Bitcoin's current price surge, Taleb's warning about the decreasing liquidity suggests that investors should remain cautious. 

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at