Bitcoin order books are most liquid since October as market depth nears $540m
|-
Bitcoin order books are the most liquid since October, the 2% market depth indicates.
-
US-based exchanges are leading the uptick in the global order book liquidity.
As predicted in December, the U.S.-based spot bitcoin (BTC) exchange-traded funds (ETFs) approved in January are impacting not only the cryptocurrency's price, but also order book liquidity, or the ability to trade at stable prices.
These effects are increasingly evident a month after the nearly a dozen ETFs began trading.
Early Tuesday, Bitcoin's 2% market depth across 33 centralized exchanges, or the combined value of buy and sell orders within 2% of the market price, rose to $539 million. That's the highest since October and a roughly 30% increase since the spot ETFs hit the market on Jan. 11, according to data tracked by Paris-based Kaiko.
BTC: Aggregated 2% market depth (Kaiko) (Kaiko)
The greater the market depth or liquidity, the easier it is to buy and sell large quantities without affecting prices, and the lesser the slippage, the difference between the prices at which trades are quoted and executed.
U.S.-based exchanges have led the rise in the global bitcoin market depth, according to Kaiko.
The share of the U.S.-based exchanges in the global 2% market depth has increased to 48% from 14.3% since spot ETF expectations gripped the market in October.
While the market depth has improved, it remains well below the levels in excess of $800 million observed before the collapse of Sam Bankman-Fried's crypto exchange FTX and its sister concern, Alameda Research, in November 2022.
The share of U.S. exchanges has improved sharply since October. (Kaiko) (Kaiko)
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.