Bitcoin Liquidity Exploding, The “Alameda Gap” Is No More
Summary
Bitcoin prices fell to $61,500 on March 19, but liquidity across major exchanges like Binance and Coinbase has been steadily recovering. The liquidity is now above the "Alameda Gap," a positive sign for traders. Liquidity is crucial for easy conversion between fiat and crypto without impacting prices. Kaiko's latest report shows that Bitcoin's 2% market depth has fully recovered to pre-FTX levels, indicating renewed confidence in the secondary market. The recent surge in Bitcoin prices and tight trading spreads on major exchanges have contributed to this recovery. The upcoming halving event in mid-April may further deepen liquidity as rising prices are expected to draw more people into the market.
