Bitcoin Liquidity Is Drying Up as Crypto ‘Tourists’ Recoil From Industry Disorder
- Difference between expected and actual trade prices increase
- Binance is latest crypto firm swept up in regulatory action
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By just about any measure, Bitcoin liquidity remains low, despite the cryptocurrency’s eye-catching upsurge this year.
Investors have been paying more on trades because of slippage, or the difference between the expected price of a transaction and the price at which it’s fully executed, a sign of worsening liquidity, according to Conor Ryder at Kaiko. The higher the difficulty in trading, the more investors are exposed to potential volatile price swings.