Bitcoin Liquidity and Market Depth Rebound Since Launch of Spot ETFs, But Still Below Pre-FTX Levels
• Bitcoin order books are the most liquid since October, with 2% market depth reaching $539 million across 33 exchanges. This has increased 30% since spot Bitcoin ETFs began trading in January.
• Greater market depth and liquidity allows large quantity trades with less price impact and slippage.
• U.S. exchanges now account for 48% of global Bitcoin market depth, up from 14.3% in October, led by new spot BTC ETFs.
• Market depth remains below $800 million levels seen before FTX collapse in November 2022.
• U.S. exchange share of market depth has risen sharply since October when spot ETF expectations began affecting Bitcoin price and liquidity.