Bitcoin Liquidity Falls Low. During the last week the crypto market movement showed a decline until Bitcoin liquidity experienced a sharp decline of 200 million US dollars.This decline even made liquidation or the value of BTC fall to its lowest point in the last 10 months, lower than the moment the FTX exchange fell in November 2022.
Market analyst at Kaiko, Conor Ryder, assesses the liquidity of the crypto market as a whole began to experience a sharp decline right after the banks in the United States (US) collapsed.
Starting with the collapse of Silicon Valley Bank (SVB) due to a capital crisis amid the bank rush of investors, SVB’s bankruptcy then spread to Silvergate Capital’s crypto banking.
Since crypto banking stocks from La Jolla, California have contracted, crypto investors have started to lose faith in digital asset trading.Investors believe a decline in Silvergate Capital shares could affect the volatility of the crypto and stablecoin markets, given that these two assets are highly vulnerable to fluctuations in fiat currencies such as the US dollar or commodities such as gold.
Bitcoin Liquidity Falls Low. This reason then made investors start to make inefficiencies and abandon cryptocurrency trading, until finally the movement of Bitcoin recorded a sharp decline this week.
The price of Bitcoin over the last 24 hours was observed to fall 0.16 percent to 27,899 US dollars per coin.Not only Bitcoin, the sideways movement of other crypto coins such as Ethereum was also observed to have decreased by 0.93 percent until the price collapsed to US$1,766 per coin.
A similar decline also occurred in BNB which fell 0.06 percent to a price range of 1.00 USD. Followed by Cardano which weakened 1.73 percent to 0.3526 USD and Polygon which decreased 2.40 percent towards a price of 1.08 USD per coin.
Bitcoin Liquidity Falls Low. If the bankruptcy of US financial services continues, it is not possible for the movement of crypto coins to experience a sharp decline again.