Boost Your Bitcoin Liquidity: New Exchange Launches with 100x Potential

•The Bitcoin market has been incredibly illiquid due to the FTX implosion, tightening regulation, and lost supply.
•Spot volume remains low and liquidity thin in Bitcoin markets; only 2.7% of the supply has moved in the last week.
•Institutions filing ETFs and launching exchanges could change the liquidity picture drastically in the future.

Liquidity Issues Among Bitcoin Markets

The Bitcoin market has been incredibly illiquid due to a number of factors, including the FTX implosion, tightening regulation, and lost supply. Spot volume remains low and liquidity thin across exchanges; only 2.7% of the total supply of Bitcoins have moved in the last week.

Effects of Zero-Fee Promotions

Much of the volume seen earlier this year was derived from Binance via zero-fee promotions. Once this promotion ceased, however, trading activity plummeted – suggesting that even that shallow level of spot volume was propped up somewhat artificially by zero fees (chart via Kaiko). Additionally, Binance is facing charges for “targeted wash trading” to increase volumes further calling into question just how thin liquidity may be when not supported by promotional activities like this one.

Stablecoin Withdrawals from Exchanges

Stablecoin withdrawals from exchanges are also providing insight into just how liquid Bitcoin markets are right now: 60% have left exchanges in just over six months amounting to $26 billion (as evidenced by a Flourish map). This suggests that traders are moving away from centralized exchanges as uncertainty grows due to regulatory pressures and macroeconomic conditions.

ETFs & Exchange Launches Could Change Liquidity Picture

Institutions filing ETFs and launching exchanges could change the liquidity picture drastically in the future with many high profile players entering into what was previously a niche market for retail investors. It remains unclear yet whether these developments will draw more capital into Bitcoin or whether it will simply move existing capital around between different venues; either way it is likely to affect price discovery mechanisms currently employed by traders on centralized platforms such as spot exchange arbitrage strategies or futures basis trades.

Lost Supply & Uncertainty High

Finally, there is also 7% of total supply which is likely lost due to user error or hardware malfunctions over time adding an extra layer of uncertainty into calculations about potential buying power available on any given day/time frame – although it should be noted that much of this lost coins would have been dormant anyway due to their holders being out of reach or no longer interested depending on their circumstances at any point in time since mining began back in 2009/2010 respectively..