Trading strategy #ETF #ликвидность #BTC #CRYPTO from #INVESTIDEAUA @INVESTIDEAUA
Bitcoin's average daily market depth is much more similar to ETH, although it is still significantly higher than most altcoins.
With the possible approval of a spot ETF as early as mid-January, there is hope that liquidity can actually recover soon (despite some downside risks). This can happen in two ways:
▶️liquidity is transferred through trading
▶️liquidity is transmitted through market makers (MMs)
✔️CONCLUSION
Bitcoin is by far the most liquid crypto asset. However, both liquidity measures fell sharply after the FTX collapse and have seen only a modest recovery over the past couple of months. As such, ETF approval is the biggest catalyst in the crypto markets right now, promising large upside potential and limited downside potential. ETFs could improve market conditions across the board if there is a major increase in investor appetite, despite some liquidity risks.
