coinbaseBitcoin (BTC) after the US Securities and Exchange Commission (SEC) filed a lawsuit against Cumberland 
$67,355 announced that there was no significant change in its liquidity. With this statement, the company is based in Paris. kaikoHe tried to tone down ‘s report on the decline in liquidity. “We did not see a 2 percent change or decrease in BTC-USD depth throughout October,” Coinbase said in an email to CoinDesk, stating that liquidity remained stable. Following the SEC’s accusation against Cumberland, liquidity dropped sharply on October 10, according to Kaiko’s report.
Kaiko: Liquidity Drop and Market Depth
Kaiko will be available on the Coinbase exchange on October 10 at 11:00 UTC. Bitcoin announced that it observed a 46 percent decrease in its liquidity. This liquidity, measured with a 2 percent market depth, is calculated by accumulating sell and buy orders within 2 percent of the average price. This decline means that even smaller size orders can move the price by 2 percent.
kaikoHe stated that liquidity on the selling side decreased, but an increase was observed on the buying side. This situation market makersThis suggested that he was waiting for a price drop by readjusting his positions. Lirket also stated that there was a decrease in liquidity in other exchanges and that, in general, liquidity in US-based exchanges has not yet returned to pre-litigation levels.
Cumberland: No Change in How We Operate
CumberlandIn his statement to CoinDesk, he opposed Kaiko’s analysis and emphasized that they did not make any changes to their operations after the SEC filed the lawsuit. “We are not making any changes to our operations or the liquidity assets we provide due to this lawsuit,” the company said.
In his last statement to CoinDesk, Kaiko said: liquidityHe reiterated that TL has since recovered and that the initial liquidity drop may have been due to changes in market expectations.
During this period, monitoring how market depth changes and how liquidity fluctuations affect market expectations will be an important focus for investors.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
