Insights
Bitcoin liquidity situation worsening; volatility expected to be enhanced Bitcoin liquidity situation worsening; volatility expected to be enhanced

Bitcoin liquidity situation worsening; volatility expected to be enhanced

Order book continues to dwindle as bank contagion enhances illiquid market

Quick Take

  • Order book depth continues to make new lows for Bitcoin; these are now 10-month lows, according to Kaiko.
  • A major ramification of an illiquid market can push direction in either way.
  • The banking crisis and closure of USD payment rails, crypto banks such as Silvergate and Signature Bank, could be a net benefit in the long run, as it could encourage more people to take self-custody of their Bitcoin when directly buying from an exchange.
Market Depth: (Source: Kaiko)
Market Depth: (Source: Kaiko)