An expert from crypto research firm Kaiko told the press that some companies that have decided to withdraw as a result of regulatory pressure. bitcoin stated that it could have a negative impact on its liquidity.
Riyad Carey, crypto analyst working at Kaiko, said that Alameda and FTX Emphasizing that Bitcoin liquidity could not approach the old levels after their bankruptcy, he said:
“Considering the latest developments, the data is normal. The situation faced by the two largest market makers in the cryptocurrency industry is causing increased pressure on liquidity. No one has ever been able to fill the void left by Alameda.”
As a result of increasing regulation pressure in the USA, giant market makers Jane Street and Jump Trading decided to cease their activities in the country. While Jump Trading focuses more on other countries, Jane Street is downsizing.
According to the chart shared by Kaiko analyst, after the FTX exchange went bankrupt, BTC liquidity has not returned to its previous level.
What Does Liquidity Mean?
Simply put, liquidity is a measure of how well the buyers and sellers of the product match up in a trade. In low liquidity markets, volatility is more visible, while in high liquidity markets, traders are more easily matched.
For exclusive news, analytics and on-chain data Telegram our group, twitter our account and YouTube Follow our channel now! Moreover Android And iOS Start live price tracking right now by downloading our apps!