Things seem to have gone awry with Bitcoin. Although there was no significant price movement following yesterday’s Fed interest rate decision, events took an unpleasant turn, and a price drop occurred, thought to be influenced by geopolitical events in the Middle East. Additionally, a noticeable decline is observed in altcoins. Amid all this, one of the major companies in the cryptocurrency space approached BTC from a different perspective.
Bitcoin Comments
According to Kaiko, a digital asset analysis firm, there has been an increase in the amount of liquidity in crypto exchanges this year. In a new analysis shared by Kaiko, the increase in trading volume and the positive sentiment, particularly in the US Bitcoin (BTC) markets, are believed to have significantly contributed to this liquidity surge.
This year, the approval of spot BTC ETFs in the US, along with the participation of more institutional firms, likely contributed to the increase. US exchanges currently account for more than 60% of BTC’s 1% market depth, up from around 45% at the beginning of 2023.
Kaiko also notes that Bitcoin dominance has risen in US exchanges compared to altcoins, while it has declined in offshore markets.
Historically, BTC dominance has been higher on US platforms due to higher institutional participation in the US, and traders prefer BTC over riskier altcoins. Interestingly, despite BTC’s price drop in the second quarter, BTC’s share in US markets continued to rise, suggesting that the launch of spot ETFs could exacerbate this trend.
Kaiko wasn’t the only company highlighting the existing Bitcoin-altcoin balance. Additionally, CryptoQuant’s CEO Ki Young Ju recently stated on social media platform X that Bitcoin is flowing into the US.
Bitcoin Price Update
After today’s price movements, Bitcoin continues to trade at the $63,000 level. It had dropped below this level in recent hours and is still trading around the mentioned levels.
As of the time of writing, BTC is finding buyers around the $62,900 region. BTC’s market cap stands at $1.242 trillion, while its trading volume rose to $39.8 billion, reflecting intense buying/selling pressure in the market.
