Insights

Dwindling order book depth raises liquidity concerns in crypto markets

exchange681 week ago

0 0 1 minute read

Definition

The quantity of bids and asks within 2% of the mid-price for USD(T) pairs.

Quick Take

Order-book depth in the crypto market for Bitcoin and Ethereum hits new lows, even lower than the levels post-FTX collapse.
A major concern is an illiquid market that can have ramifications both to the upside and downside.
According to Kaiko, the market depth is now the lowest since the Terra collapse, which has dropped over 50% since October for both Bitcoin and Ethereum.

Analyst

James Van Straten

Former Lead Analyst at CryptoSlate

James fervently appreciates data, technology, and trend-spotting. As a tech and liberty maximalist, he hails Bitcoin as the 21st century’s paramount invention.

Disclaimer: Our writers’ opinions are solely their own and do not reflect the opinion of CryptoSlate. None of the information you read on CryptoSlate should be taken as investment advice, nor does CryptoSlate endorse any project that may be mentioned or linked to in this article. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own due diligence before taking any action related to content within this article. Finally, CryptoSlate takes no responsibility should you lose money trading cryptocurrencies.