Bitcoin Liquidity Increases On Trading Exchanges! Is This Something to Worry About?


Based on the latest data, the data shows that Bitcoin liquidity is undergoing a significant shift, especially on US crypto exchanges. In particular, the latest data shows a significant increase in liquidity, which is associated with the introduction of exchange-traded funds (ETFs) in the United States.

Meanwhile, this shift marks an important issue in Bitcoin trading dynamics, changing investor sentiment and market behavior. In addition, this update comes at a time when the market is bullish on the crypto segment.

The latest report by the research company Kaiko emphasizes a significant change in the dynamics of Bitcoin liquidity, which specifically favors crypto exchanges in the US. Significantly, the data reveals that US crypto exchanges have emerged as dominant players in launching Bitcoin trading, especially since the introduction of the US Bitcoin Spot ETF.

Previously, non-US platforms dominated the Bitcoin market, but with the advent of Bitcoin ETFs, there has been a significant reversal. Additionally, reports indicate that US trading exchanges have accounted for almost half of the bids within 2% of Bitcoin's mid-price since the inception of US spot ETFs.

It is worth noting that this increase in liquidity is an important factor in improving the efficiency of trading operations, ensuring smoother execution of orders without significant price spikes.

Matthew Sigel, head of digital asset research at VanEck, noted that Bitcoin's positive price momentum was most pronounced during US trading hours, indicating increased access to liquidity.

Additionally, the bullish attitude toward Bitcoin ETFs serves as an inflection point, with supporting factors hinting at broader crypto adoption. This sentiment is supported by the recovery in trading volume of digital assets, especially after the falling levels of the FTX exchange during the 2022 plunge market.

In other words, the recent increase in Bitcoin liquidity on US crypto exchanges, driven by the introduction of Bitcoin ETFs, marks a turning point in the crypto market. This shift not only improves trading efficiency but also shows increased investor confidence in Bitcoin as an asset class.

As an overview, in the last 24 hours, Bitcoin Futures Open Interest (OI) increased by 0.69% to reach 465.68K BTC or $24.41 billion. Based on CoinGlass data, Binance leads in Bitcoin Futures Open Interest, experiencing an increase of 2.31% to reach 116.30K BTC or $6.10 billion.

At the time of writing, Bitcoin price is trading at $52,317.72, with trading volume in the last 24 hours up 24.12% to $23.37 billion. Notably, Bitcoin dominates with more than 99% of inflows, while Ethereum also benefits significantly.