Experts pointed out a reduction in crypto liquidity after the collapse of FTX
The ability to perform large trading operations with digital assets without a noticeable influence on their prices was significantly reduced after FTX collapse. This conclusion was reached by KAIKO analysts.
A Bright Spot Amid The FTX Contagion: #btc Liquidity Has Improved📈
SINCE LAST WEEK, 2% Market Depth Has Recovered to ~ 10k BTC.
“In the cryptocurrency market, only a few market makers dominate, including Wintermute, Amber Group, B2C2, Genesis, Cumberland and [now non -existent] Alameda. With the loss of the latter, we can expect a significant fall in liquidity, which we called the “gap AlaMeda“” “, – experts reported.
According to their estimates, the depth of the orders market for Kraken, Binance and Coinbase after the incident with Sam Bankman-Frida collapsed by 57%, 25% and 18%, respectively.
The volumes of bitcoin turbines in a weekly section collapsed more than doubled-up to $ 100 billion. The most sharp decrease was shown by https://gagarin.news/ Huobi, Bitfinex, Bitmex metrics.
The most deterioration of market conditions was affected by L1-Actives, in a smaller-Defi-tokens.
In an interview with The Block Ceo Wintermute, Evgeny Gaeva explained the decrease in liquidity with the revision of marquers of his position on certain platforms.
“The situation can be explained by two factors. On the one hand, large market participants have less access to bitcoins loans, since most creditors are excessively careful or simply untenable. In parallel with this, they aggressively reduce their risks in most exchanges, since the full degree of infection is unclear. “, He explained.
Recall, Binance refused to save Genesis Trading, according to The Wall Street Journal.
On November 14, the landing platform requested emergency access to a credit line of $ 1 billion, referring to a lack of liquidity. The request was submitted before suspension of withdrawal of funds and issuing new loans after FTX collapse.
Earlier, against the backdrop of Genesis freezing credit operations and the Grayscale failure to disclose reserves in the community, doubts arose in the stability of DCG itself.
Prior to this, Multicoin Capital predicted the fast collapse of trading companies because of the FTX and said that they were expected to see new statements by the industry about problems.
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