Bitcoin has rallied sharply this month — but not for reasons you might think.
The world’s largest digital currency has risen more than 12% since the beginning of June. On Wednesday, its price topped $30,000 to hit its highest level since April 14, according to Coin Metrics data.
Market players have attributed the jump to the news that U.S. asset management giant BlackRock had filed for a spot bitcoin exchange-traded fund tracking the market price of the underlying asset.
While that may be part of the reason, the outsized moved can be put down to another factor beyond the news flow surrounding large institutions taking steps to embrace bitcoin or other digital assets.
Thin liquidity and big players
Crypto “market depth” has been sitting at very low levels this year. Market depth refers to a market’s ability to absorb relatively large buy and sell orders. When market depth is low and big players put in orders to buy or sell digital coins, prices can move in a big way up or down, even if the orders are not that huge.
Market depth is a measure of liquidity in a market.
According to data firm Kaiko, bitcoin’s market depth has fallen 20% since the start of this year. Bitcoin has been one of the hardest-hit cryptocurrencies in terms of market depth, Kaiko said.
The market depth of bitcoin at a 1% range from the mid price has fallen about 20% since the start of the year, according to data firm Kaiko.
Kaiko
“Bitcoin’s recent surge in value has largely been driven by large trades within a less liquid market,” Jamie Sly, head of research at CCData, told CNBC via email.
“Our analysis of market orders over 5 BTC reveals an aggressive surge in market buying, suggesting large players are seeking to gain exposure to digital assets.”
“When combining large orders with thin books, the market is subject to more volatile movements,” Sly added.
That lack of liquidity has in part been driven by the regulatory scrutiny of the crypto industry from U.S. authorities. The Securities and Exchange Commission has sued major exchanges such as Coinbase and Binance.
Low liquidity, which has been a feature of the crypto market all year, is also partly behind bitcoin’s 80% year-to-date rally.
Retail traders aren’t back — yet
Another notable feature of the current crypto market is the low volumes being traded on exchanges.
Daily trading volume in the cryptocurrency currently sits at around $24 billion, according to crypto data website CoinGecko.
That’s down markedly from the more than $100 billion of overall trading volume in bitcoin during the peak of the 2021 crypto rally, when bitcoin rose close to an all-time high of nearly $69,000.
Large crypto investors usually hope that an early surge in prices will be enough to tempt retail investors back into participating in the rally which ultimately boosts prices for bitcoin and other digital coins. But that hasn’t happened.
“What is notable about this rally is that trade volumes overall are at multi-year lows, and we are only seeing a slight increase, which even then is far lower than levels we saw from January to March,” Clara Medalie, director of research at Kaiko, told CNBC.
“I think trading volumes and price volatility are two of the most telling indicators of crypto market activity. Both volatility and volumes are at multi-year lows, and even a rapid increase in price is not enough to draw traders in.”
‘It’s not a market for ordinary clients’
In the last bitcoin cycle, market momentum was largely driven by big, institutional names as investment banks from Morgan Stanley to Goldman Sachs set up trading desks to give their clients exposure to the digital currency.
However, the market really started to break out only when retail traders started to take notice — in early 2021, people became tempted by the phenomenon that was NFTs, or nonfungible tokens, and other more speculative bets.
Later that year, the cryptocurrency market experienced a seismic rally, with the price of bitcoin zooming to unprecedented levels. That was in tandem with surging trading volume, which climbed from $21.2 billion at the start of 2020 to $105.4 billion on Nov. 9, 2021, when bitcoin hits its all-time high, according to CoinGecko.
Today, trading volume is nowhere near where it was at the height of the 2021 crypto boom.
“Any bit of news, if it’s good, then the professional traders trade — otherwise, they’re not trading,” Carol Alexander, a professor of finance at the University of Sussex, told CNBC.
“If a bit of good news like the bitcoin ETF comes, they fire the cannons upwards.”
BlackRock’s ETF filing was followed by similar move from Invesco and WisdomTree, which also filed for their own respective bitcoin-related products.
“Bitcoin and ether are both being manipulated in this way by the professional traders. They don’t trade most of the time, they wait until there’s a bit of good news,” Alexander said.
“Then they’ll sell the top and you’ve got a sideways market.”
Indeed, bitcoin has traded within a range this year, and attempts to burst significantly higher have been thwarted.
Alexander thinks bitcoin is likely to trade within a range of between $25,000 and $30,000 for the remainder of the summer.
She expects, however, that toward the end of the year, the cryptocurrency will climb toward $50,000, citing attempts from larger market players to prop up the market, with big purchases making outsized moves.
“It’s not a market for ordinary clients. It’s really is not,” she warned.
Has the market bottomed?
Vijay Ayyar, vice president of international markets at the Indian crypto exchange CoinDCX, told CNBC he suspects the latest run-up in bitcoin’s price is being driven more by “long term institutional buyers.”
Big funds and crypto-focused hedge funds are among the market participants driving the action, Ayyar added.
“I don’t think this is as much of a retail push, since retail was quite flushed out during the recent pullback,” he said.
Several crypto industry insiders have expressed hopes that the market is nearing a “bottoming” period where it can start to rise again.
The recent price action echoes activity in 2018, when both bitcoin’s price and volumes were subdued for several months before beginning to rise again the following year.
However, CCData’s Sly said it is “still too early to say whether the worst is over for bitcoin.”
“The recent wave of interest from traditional financial institutions, like Blackrock, Citadel, and Fidelity instils a renewed optimism in the market,” he said.
“Provided the wider macro environment and equity markets continue to be favorable, it is possible that bitcoin could maintain its current positive price trajectory.”
A crane towers above the mobile launcher 2 adjacent the Vehicle Assembly Building at Kennedy Space Center on Tuesday, July 22, 2025.
Richard Tribou | Tribune News Service | Getty Images
The director of NASA’s Marshall Space Flight Center, Joseph Pelfrey, announced his resignation from the role on Thursday, CNBC confirmed.
Pelfrey said in an email to employees at the space agency that as NASA focuses on its mission to return humans to the moon, it will be “important for agency leadership to move forward with a team they choose to execute the tasks at hand.”
The email also said Pelfrey would work with NASA leaders to “pursue new ways” to “serve our space program and our great nation.” Pelfrey wasn’t immediately available to comment.
NASA confirmed Pelfrey’s resignation and said in an email to CNBC that the agency is proceeding “with a public, open competition to find the next permanent director at one of the agency’s most important centers for human spaceflight.”
At Marshall Space Flight Center, in Huntsville, Alabama, Pelfrey oversaw “7,000 onsite and near-site civil service and contractor employees,” and “an annual budget of approximately $5 billion,” according to a NASA web page describing his responsibilities. The space center now employs over 6,000 people, according to the center’s official government website.
Pelfrey had planned an all-hands conference with Marshall employees this week that was canceled, said agency staffers, who asked not to be named to discuss sensitive matters. They said Pelfrey’s resignation came as a surprise.
The White House’s 2026 budget request, which has not yet been enacted into law, includes funding for the space agency. However, NASA’s resources have declined amid Trump administration budget cuts.
About 4,000 NASA employees left through a deferred resignation program offered by the agency, and others were let go through cuts initiated by the Department of Government Efficiency (DOGE), an effort that was led by Elon Musk during his days with the Trump administration.
The administration also defunded and compelled the closure of the NASA Goddard Institute for Space Studies, which was housed in abuilding owned by Columbia University in New York.
Elon Musk, CEO of SpaceX and Tesla, attends the Viva Technology conference at the Porte de Versailles exhibition center in Paris on June 16, 2023.
Gonzalo Fuentes | Reuters
Tesla shares fell more than 4% on Thursday after data out of Europe showed a continuing sales slump for the automaker, despite strong demand for fully electric vehicles in the region.
Tesla EV registrations in Europe, a proxy for sales, fell by about 23% year-over-year in August, according to data from the European Automobile Manufacturers’ Association (ACEA) on Thursday.
There were 14,831 Tesla EV registrations in Europe last month, down from 19,136 in August 2024. In the first eight months of this year, Tesla EV registrations in Europe declined 32.6%, the ACEA said.
Meanwhile, total EV registrations throughout the region rose by around 26% through August compared to the same period in 2024. By contrast, registrations for petrol and diesel-powered vehicles declined by more than 20% over that stretch.
Still, RBC analysts wrote in a note on Thursday that they expect Tesla’s total deliveries for the third quarter could amount to 456,000, above a FactSet-compiled consensus of 448,000 deliveries and a Visible Alpha consensus of 440,000 deliveries.
The analysts expect a bump for Tesla as consumers rush to buy EVs in the U.S. before a $7,500 federal tax credit expires at the end of September.
Even with Thursday’s slide, Tesla’s stock has bounced back following a brutal start to the year. It’s now up 5% in 2025 after plunging 36% in the first quarter.
Musk’s political activism in the U.S. and beyond has hurt the Tesla brand and dampened its appeal to many prospective EV buyers.
Earlier this year, Musk endorsed Germany’s far-right AfD party, and this month he appeared by video at an anti-immigrant rally in the U.K. that turned violent. The rally was led by activist Tommy Robinson, a convicted fraudster with a violent criminal record.
British Prime Minister Keir Starmer rebuked Musk for “dangerous” comments that he made at the rally, where 26 police officers were injured. Musk told attendees, “violence is coming to you” and “you either fight back or you die.”
To revitalize interest in the brand, Tesla has said an affordable new model is in the works, which could help it fend off increased competition from the likes of Volkswagen, BYD and other EV makers that have been picking up market share.
Dario Amodei, co-founder and chief executive officer of Anthropic, at the World Economic Forum in 2025.
Stefan Wermuth | Bloomberg | Getty Images
A federal judge on Thursday preliminarily approved Anthropic’s offer to pay $1.5 billion to settle a class action lawsuit with a group of authors, in what will be the largest publicly reported copyright recovery in history.
The lawsuit, filed in the U.S. District Court for the Northern District of California, was brought last year by authors Andrea Bartz, Charles Graeber and Kirk Wallace Johnson. It alleged that Anthropic illegally downloaded books from pirated databases like Library Genesis and Pirate Library Mirror.
“We are grateful for the Court’s action today, which brings us one step closer to real accountability for Anthropic and puts all AI companies on notice they can’t shortcut the law or override creators’ rights,” the authors said in a joint statement Thursday.
Anthropic didn’t immediately respond to CNBC’s request for comment.
The startup was founded by former OpenAI research executives, including Anthropic CEO Dario Amodei, in 2021. Anthropic, which is valued at $183 billion, is best known for its AI assistant Claude.
AI startups and media companies have been closely following this lawsuit against Anthropic as they work to outline what copyright infringement means in the AI era.
Anthropic initially proposed the $1.5 billion settlement earlier this month. The company said it would pay roughly $3,000 per book plus interest, and it agreed to destroy the datasets containing the allegedly pirated material.
U.S. District Judge William Alsup initially expressed some reservations about Anthropic’s offer, including concerns over how to ensure authors would be properly informed. Alsup ultimately approved the settlement after “several weeks of rigorous assessment and review,” according to a release.
Alsup will consider final approval of the settlement once the notice and claims processes are complete, the release said.
Aparna Sridhar, Anthropic’s deputy general counsel, said in a statement that the company is pleased with the determination, and that the settlement “simply resolves narrow claims about how certain materials were obtained.”
“The decision will allow us to focus on developing safe AI systems that help people and organizations extend their capabilities, advance scientific discovery, and solve complex problems,” Sridhar said.