Bitcoin liquidity rose to its highest level since October 2023, according to Kaiko analysts. What has impacted bitcoin's order book liquidity and ability to trade at stable prices? How long will this last? What does high liquidity mean for crypto in general and specifically for bitcoin amid the current market environment?
This record performance was favorably impacted by the launch of spot Bitcoin ETFs stateside. This made it possible for the underlying asset to enjoy robust demand and start trading at a stable price.
High, as well as uniform and stable, demand for BTC from institutional investors triggered an upsurge of interest in the flagship cryptocurrency from ordinary users.
High liquidity allows prices to move more actively and to make it through periods of decline in value more smoothly. Meanwhile, no one can say for sure how long this trend will last. As long as ETFs are in demand and the products of US management companies attract attention, BTC has nothing to worry about.