Binance, the largest cryptocurrency exchange in the world, has limited Bitcoin withdrawals from its platform multiple times in the past day. As if the regulatory concerns and historically poor #Quad4 performance weren’t enough, crypto investors now have liquidity issues to worry about.
“Obviously, given all the dynamics we’ve seen in the last six to nine months with some of the other exchanges in the broader crypto landscape, I think you’d be silly to not be very concerned,” explains Josh Steiner in this clip from The Call @ Hedgeye.
“I read what Binance is saying as they basically have more Bitcoin claims than they have Bitcoin under custody,” adds Rob Simone. “There’s a way for everyone at home to mitigate that by taking custody of their keys and not allowing the exchange to do that with your Bitcoin.”
Banks, Blackstone REITs and now crypto have all made headlines for a lack of liquidity in recent weeks. Keith McCullough expects investors will continue to respond by flocking to Apple stock.
“Binance has enough Bitcoin, then they don’t. BREIT has enough liquidity to pay people, then they don’t,” McCullough says. “To a degree, it explains why Apple – if it’s not a stock, it’s just a liquidity position at this point – can do what it does on days like that, because if you need to get liquid, there you go.”
Watch the full clip above.
