Cryptocurrency market, unlike last year, is completing the first quarter of 2023 with a rise. While the total market value increased by 50% in the first 3 months of the year, bitcoin On the other hand, it gained 65% in value and made its investors smile.
While the recovery in digital assets continued, the banking crisis that emerged in the USA negatively affected cryptocurrencies in the short term. Experts expect Bitcoin to continue to appreciate as a result of monetary expansion, but intra-market dynamics point to another danger.
Clara Medalie, who is sitting in the chair of research at crypto research company Kaiko, shared her latest observation. According to Medaile, after the banking crisis, there was a liquidity problem in the market that should be considered. Crypto researcher, status “quite dangerous” takes it as:
“Although the drop in liquidity always facilitates the upside attacks, at the end of the day, the negativities arise. As soon as the buying pressure subsides, anything can happen to the Bitcoin price.”
Market Depth Dropped More Than 10%!
According to the graphic shared by Kaiko, since the beginning of the month, Bitcoin and Ethereum lost liquidity.
According to the order book data collected from 10 different cryptocurrency exchanges, the market depth has decreased by about 17% since the first day of March.
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