Bullish bitcoin has been a surprise winner of the banking blowout. Yet investors aiming to amp up their bets face an ominous obstacle: A lack of liquidity that could trigger wild price swings. The price of the No.1 cryptocurrency has jumped 40 per cent to around US$27,700 (S$37,000) since March 10, when the failure of Silicon Valley Bank (SVB) careered...
Bullish bitcoin has been a surprise winner of the banking blowout. Yet investors aiming to amp up their bets face an ominous obstacle: A lack of liquidity that could trigger wild price swings.
Slippage, a liquidity measure describing how much prices change between the placement and execution of a trade, has also increased. Slippage for buying bitcoin with US dollars on the Coinbase exchange is 2.5 times higher than it was at the start of March, said Conor Ryder, research analyst at Kaiko. Lower liquidity typically translates to more volatile markets, especially in crypto. Kaiko's Ryder said this was possibly one factor behind bitcoin's leap this month.
The vanishing liquidity can be traced back to the collapse of Sam Bankman-Fried's FTX exchange and hedge fund Alameda Research. Alameda was one of the biggest liquidity providers in the crypto industry, and its bankruptcy left a void that has been exacerbated by the banking sector turmoil of 2023.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Cryptoverse: Buoyant bitcoin's losing its liquidityBullish bitcoin has been a surprise winner of the banking blowout. Yet investors aiming to amp up their bets face an ominous obstacle: a lack of liquidity that could trigger wild price swings. The price of the No.1 cryptocurrency has jumped 40 per cent to around $27,700 since March 10, when the failure of
Read more »
'Why haven't you accepted me yet?' Jeffrey Xu admits he received hate, got called 'ah tiong' after going public with Felicia ChinGetting into a public relationship as a celebrity may come with its detractors, so it's no surprise that some showbiz couples choose to keep their romantic lives on the down low — at least in the beginning. For actor Jeffrey Xu, he and former actress Felicia Chin initially kept their relationship secret for a year when they started dating in...
Read more »
Russian plan for nukes in Belarus raises questionsPARIS: The Kremlin's announcement that it will station nuclear weapons on the territory of its ally Belarus echoes US practice in Europe, but doubts remain over how far Russia will take the plan. Opting to rattle the nuclear sabre yet again following his February 2022 invasion of Ukraine, President Vladimi
Read more »
While You Were Sleeping: 5 stories you might have missed, March 27US says no indication Russia has moved nuclear weapons The United States has seen no indication that Russia has yet moved any nuclear weapons, National Security Council spokesman John Kirby said Sunday, after Moscow announced it would station tactical nuclear arms in Belarus. Read more at straitstimes.com.
Read more »
Pakistan defers decision on drug price rise as pharma firms struggleKARACHI, Pakistan : Pakistan on Monday deferred a decision on a request by pharmaceutical firms to raise the prices of more than 100 medicines, prolonging a stand-off with an industry struggling to stem losses from soaring inflation and a weakened currency.The request was discussed during a meeting of the
Read more »
More food shortages could add to Britain's price pressureUK grocery price inflation hit a record 17.5% the four weeks to March 19. Read more at straitstimes.com.
Read more »