Fun

Crypto’s ‘Alameda Gap’ vanishes amid Bitcoin’s meteoric rise: Kaiko

News Feed - 2024-03-19 12:03:23

Martin Young5 hours agoCrypto’s ‘Alameda Gap’ vanishes amid Bitcoin’s meteoric rise: KaikoCrypto market depth has almost fully recovered and is back to its pre-FTX average, reports crypto research firm Kaiko.2201 Total views2 Total sharesListen to article 0:00NewsOwn this piece of crypto historyCollect this article as NFTJoin us on social networksA major decrease in market liquidity that persisted after the shutdown of FTX and Alameda Research in November 2022 has now recovered to pre-collapse levels, according to crypto research firm Kaiko.


In a March 18 research bulletin, Kaiko data shows that the liquidity gap, dubbed the “Alameda Gap,” recovered to pre-FTX levels last week due in part to a recent Bitcoin (BTC) rally.


Kaiko coined the term “Alameda gap” in November 2022 due to the firm’s role as a large market maker. It refers to a drop in liquidity on global exchanges caused by huge losses incurred by market makers.


The collapse caused a substantial decline in available trading liquidity, affecting volumes and market stability, which highlighted the influence of major players in crypto markets in 2022.


In its recent note, Kaiko noted the gap persisted for more than a year “as market makers waited on the sidelines for sentiment and trading activity to recover.”


However, Kaiko said that as of last week, Bitcoin’s 2% market depth is up by 40% year-to-date and briefly surpassed its pre-FTX average of $470 million.


“As of last week, market depth has almost fully recovered and is back to its pre-FTX average,” it noted.


The firm attributed this to the surge in BTC prices, which have gained 60% since the beginning of this year and notched a new all-time high of $73,750 on March 14. Bitcoin market depth. Source: Kaiko


Meanwhile, Kaiko also reported that BTC/USD spreads on three major exchanges available in the United States — Coinbase, Kraken and Bitstamp — have also declined, “suggesting liquidity conditions are meaningfully improving.”


The change in spreads could partly be due to structural reasons, it noted before concluding that the cost of trading in the U.S. is now much cheaper. A spread is the difference between the asking price and the bidding price of an asset.


Related:8 ways crypto exchanges can help address liquidity concerns


Earlier this month, Cointelegraph reported that Bitcoin could face a “sell-side liquidity crisis” later this year if institutional exchange-traded fund (ETF) inflows continue.


However, daily ETF inflows have slowed considerably over the past few days, dropping below $200 million from highs above $500 million and a $1-billion daily inflow record last week when BTC hit an all-time high.


Magazine:‘Crypto is inevitable’ so we went ‘all in’ — Meet Vance Spencer, permabull# Bitcoin# Liquidity# FTXAdd reactionAdd reactionRead moreBitcoin mining firm Bit Digital reports revenues up nearly 40%BitMEX whale tanks Bitcoin price to $8.9K during BTC sell-offBitcoin levels to watch next as BTC price risks sub-$60K retest

News Feed

Amaka Nwaokocha11 hours agoHuobi’s Jun Du acquires 10 million CRV tokens to support CurveDu said the existing challenges were transitory and that he believes the industry would benefit from collective support.1072 Tota
Crypto ‘relief rally’ may be just beginning, with sellers exhausted
Jesse Coghlan3 hours agoCrypto ‘relief rally’ may be just beginning, with sellers exhaustedThe crypto market could bounce back this month after a rocky June, with stablecoin outflow from exchanges showing slowing sel
Derek Andersen4 hours agoChina opens industrial park for digital yuan CBDC development in ShenzhenThe government is incentivizing new residents to come develop payment solutions, smart contracts, hard wallets and promoti
Ethereum Forms ‘A Huge Inverse Head & Shoulders’ – $20K Target In Sight?
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
Leveraged Tokens Soon Available on the Bitcoin.com Exchange
Leveraged Tokens Soon Available on the Bitcoin.com ExchangeFour new tokens by Amun will be listed on the Bitcoin.com Exchange this Thursday. Amun is a leading crypto technology comp
Oliver Rust3 hours agoWhy is Jerome Powell gaslighting us about the odds of recession?Economic data seems to indicate an economic slowdown is inevitable. So why is Fed Chairman Jerome Powell trying to gaslight Americans?
Tencent to Build Virtual Bank After Hong Kong Regulator Approves License
Chinese internet giant Tencent is set to open a blockchain-based virtual bank after the Hong Kong Securities and Futures Commission (SFC) approved a new license. Speaking at the Wor
South African exchange VALR wins dual crypto licenses
Gareth Jenkinson10 hours agoSouth African exchange VALR wins dual crypto licensesVALR receives two licenses from South Africa’s Financial Sector Conduct Authority following new requirements for exchanges in the country
Bitcoin Enters Oversold Levels, Analyst Warns This Is Bearish, Not Bullish
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
Welcome to the United Kingdom — Please hand over your crypto
Syed Rahman6 hours agoWelcome to the United Kingdom — Please hand over your cryptoAn April change to United Kingdom law will allow authorities to treat crypto like other assets by seizing it without accusing suspects o
Millionaires FOMO: 73% Will Own Bitcoin by 2022, Survey
Millionaires FOMO: 73% Will Own Bitcoin by 2022, Survey Hundreds of millionaires have revealed in a new survey that they have either already invested in bitcoin
Key Bitcoin Levels Under The Spotlight This Weekend: Insights From Glassnode
Este artículo también está disponible en español. Bitcoin (BTC), the largest cryptocurrency by market capitalization, has experienced a remarkable uptrend over the past t