Bitcoin Liquidity Still Lagging After FTX Collapse Despite Price Recovery
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Bitcoin has risen 70% in the past year despite the FTX collapse, but liquidity remains low compared to pre-FTX levels.
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Market depth for top cryptocurrencies is 55% lower than a year ago at $800 million according to Kaiko.
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Weak liquidity means higher slippage costs and volatility from large orders.
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Alameda was a top market maker before its collapse, leaving a liquidity gap in crypto markets.
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Bitcoin saw some liquidity improvement in October during its 28% price surge, but alts did not.