As Bitcoin enthusiasts keenly watch the $52,000 mark, a deeper examination into Bitcoin's liquidity reveals shifting sands beneath the market's surface. CryptoSlate, leveraging Kaiko's rich data, uncovers the nuanced dance of buy and sell orders within a critical 2% market depth, unveiling the precarious balance that maintains Bitcoin's price stability. Against the backdrop of a potential supply squeeze, this analysis promises insights into the fluid dynamics of liquidity that could very well dictate the future of crypto trading.
How do US exchanges contribute to Bitcoin’s market liquidity? How do US exchanges contribute to Bitcoin’s market liquidity?
US exchanges account for a relatively small portion of the global trading volume but provide 49% of the global liquidity, which suggests they have greater market depth to facilitate larger transactions for a smaller number of traders.
3 min read
Updated: Feb. 22, 2024 at 3:08 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
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Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
