• Bitcoin order books are the most liquid since October, the 2% market depth indicates.

  • US-based exchanges are leading the uptick in the global order book liquidity.

As predicted in December, the U.S.-based spot bitcoin (BTC) exchange-traded funds (ETFs) approved in January are impacting not only the cryptocurrency's price, but also order book liquidity, or the ability to trade at stable prices.

These effects are increasingly evident a month after the nearly a dozen ETFs began trading.

Early Tuesday, Bitcoin's 2% market depth across 33 centralized exchanges, or the combined value of buy and sell orders within 2% of the market price, rose to $539 million. That's the highest since October and a roughly 30% increase since the spot ETFs hit the market on Jan. 11, according to data tracked by Paris-based Kaiko.

Chart

BTC: Aggregated 2% market depth (Kaiko) (Kaiko)

The greater the market depth or liquidity, the easier it is to buy and sell large quantities without affecting prices, and the lesser the slippage, the difference between the prices at which trades are quoted and executed.

U.S.-based exchanges have led the rise in the global bitcoin market depth, according to Kaiko.

The share of the U.S.-based exchanges in the global 2% market depth has increased to 48% from 14.3% since spot ETF expectations gripped the market in October.

While the market depth has improved, it remains well below the levels in excess of $800 million observed before the collapse of Sam Bankman-Fried's crypto exchange FTX and its sister concern, Alameda Research, in November 2022.

Chart

The share of U.S. exchanges has improved sharply since October. (Kaiko) (Kaiko)


All writers’ opinions are their own and do not constitute financial advice in any way whatsoever. Nothing published by CoinDesk constitutes an investment recommendation, nor should any data or Content published by CoinDesk be relied upon for any investment activities. CoinDesk strongly recommends that you perform your own independent research and/or speak with a qualified investment professional before making any financial decisions.

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