Binance Bitcoin Liquidity Plunges During ETF Rumor Rollercoaster, Causing Slippage for Traders

Binance's bitcoin liquidity plummeted during the ETF rumor rollercoaster, per data from Kaiko. The 0.1% ask depth fell from 100 BTC to just 1.2 BTC.

The rumor of a BlackRock spot bitcoin ETF caused bitcoin to quickly spike 7.5% to $30,000 before retreating once denied.

Lower liquidity led to massive slippage for traders, with some seeing losses as high as 20% due to poor execution.

Kraken and Coinbase outperformed other major exchanges in maintaining liquidity during the volatility.

Market makers on Kraken and Coinbase likely helped keep liquidity more stable relative to exchanges like Binance.