Cryptocurrencies
Bitcoin Liquidity Hits 10-Month Low Even With the Price Surging
- Market-makers losing access to USD payment rails, says Kaiko
- Can get more volatility due to concentrated ownership: Devitt
A sign for a Bitcoin ATM at a gas station in Washington, DC.
Photographer: Al Drago/BloombergThis article is for subscribers only.
Bitcoin might be astounding investors with its double-digit rally this year, but liquidity in crypto markets remains desiccated.
One measure of how easily the largest cryptocurrency can be bought or sold has fallen to 10-month lows, according to Conor Ryder at Kaiko, who summed up the bids and asks within the 2% range of the price on both sides of market maker order books. The liquidity dropoff is happening due to the firms that buy and sell crypto losing access to dollar-payment systems.