Bitcoin Liquidity Reaches Peak Since October 2023

The launch of spot ETFs in the US has positively impacted the liquidity of Bitcoin’s order book and its ability to trade at stable prices, according to Kaiko, as reported by CoinDesk.

On February 19, the cryptocurrency’s market depth at 2% across 33 centralized exchanges increased to $539 million.

This metric represents the total value of buy and sell orders for Bitcoin within 2% of the market price.

The figure has risen to its highest level since October 2023, up approximately 30% since the launch of the exchange-traded funds in January.

Greater market depth or liquidity allows for large transactions with the asset without price slippage.

The share of American exchanges in the overall metric increased to 48% from 14.3% in October. Analysts suggest that the introduction of spot Bitcoin ETFs in the US has contributed to this strengthening. However, they also consider the price factor.

Despite the recent growth, the market depth value still falls short of the over $800 million level observed in November 2022 before the FTX collapse.

In January, Bitcoin funds from BlackRock and Fidelity ranked among the top ten largest US ETFs by inflows.

Experts suggested a capital shift into these products from ETP based on gold.

The US has captured an 83% share of the global spot Bitcoin ETF market, according to CoinGecko specialists.