The fake news regarding the spot Bitcoin (BTC) ETF approval that shook the cryptocurrency market yesterday also badly affected the Bitcoin liquidity of Binance, the world’s largest cryptocurrency exchange.
Cryptocurrency market on October 16 Around 16.40 CET It was shaken by a fake news shared. Investment giant of the US Securities and Exchange Commission (SEC) BlackRock’s False news that Spot Bitcoin exchange-traded fund (ETF) has been approved has increased Bitcoin price A fluctuation of 2 thousand dollars created.
During this volatile movement, Bitcoin liquidity in the exchanges had difficulty responding to demand. On-chain analysis company Kaio According to data provided by 0.1% ask depth The indicator called especially cryptocurrency exchange Binance He revealed that he was going through difficult times.
According to data, Binance’s market depth-specific Bitcoin liquidity increased in just 8 minutes. 99% down From 100 BTC to 1.2 BTC fell. Due to this decline, users buying and selling Bitcoin experienced high prices for a short time. with price differences (slippage) encountered. This price difference between buying and selling cryptocurrency exchanges OKX And Bybit It also happened in private. Bitcoin liquidity on these exchanges also increased in a short time. Under 2 BTC fell.
The stock markets that performed best during all this turmoil were USA based kraken And coinbase happened.
For Bitcoin, the higher the depth between buying and selling, the greater the volume of transactions. without price deviation realization becomes possible to that extent. However, as seen in this example, sudden decreases in liquidity depth high volume transactions prevents it from being carried out in a healthy way.
Making a statement about the issue on social media found Kaiko researcher Riyad Carey He made the following statements:
Binance’s selling depth dropped from 100 BTC to 1.2 in just 8 minutes this morning; OKX and Bybit also fell below 2 BTC, while Kraken and Coinbase performed better.
