The recent drop in the prices of bitcoin (BTC) and the rest of the cryptocurrencies brought with it various effects, among them, the reduction in the depth of the digital currency market on the Binance and Coinbase exchanges.
“BTC's 1% market depth was halved on Binance and Coinbase in just 2 hours,” explained market analysis firm Kaiko, on its X social network account (formerly Twitter).
1% market depth refers to the amount of bitcoin that is available to be bought or sold at a price that is 1% higher or lower than the current market price.
When the market depth of 1% BTC is halved, it means that there is another half of BTC available to be bought or sold at a price that is 1% higher or lower than the current market price.
Both Binance and Coinbase were the most affected, as they are the largest exchanges on the market. Other exchange platforms such as Kraken, OKX and Gemini were affected to a lesser extent, according to Kaiko data.
