
Sunday August outflow from crypto market reached $ 55 billion due to the decrease in liquidity -Bitfinex
According to a report published by crypto exchange Bitfinex, capital outflow in the crypto industry reached $ 55 billion in August. The analysis is based on the indicator of the total realized value, which measures the realized capital of Bitcoin (BTC) and ether (ETH), taking into account the total supply of the five leading stable coins: Tether (USDT), USD Coin (USDC), Binance USD (BUSD), Dai (DAI) and TrueUSD (TUSD). A deep dive into the data reveals a prevailing trend: In early August, the industry began to experience capital outflows, the report said. According to this indicator, about $ 55 billion was withdrawn from crypto Sundays last month. The capital outflow affected not only Bitcoin, but also ether and stablecoin liquidIdyll. Bitfinex says: The analysis also points to the return of event-based volatility, where isolated events may have a greater impact on prices and overall market movements. In August, two separate events had a significant impact on bitcoin prices. A sudden crash on August 17 led to a sale of BTC by more than 11.4%. Similarly, Grayscale's partial legal victory over the Securities and Exchange Commission on August 29 caused prices to increase by 7.6% within two hours. Although the volatility statistics remain low, we believe that the liquidity crisis in the market allows individual events to have a greater impact on market movement, Bitfnex said. Open interest in Bitcoin has exceeded the performance of crypto markets due to the increaseThe analysis states that corporate interest has weakened and trading has been halted on some exchanges. Futures and ether options have fallen significantly in 2023 compared to previous years, falling to $ 14.3 billion per day, which is a sharp decrease of about 50% from the two-year average. The open interest on a particular contract, such as Bitcoin futures or options, represents the total number of open positions. This is an indicator of how much money is currently invested in Bitcoin derivatives.The trajectory seen in derivatives markets, especially futures and options, in relation to open interest rates reflects these low liquidity patterns, writes Bitfinex.Magazine: How to protect your cryptocurrency in a volatile Sunday -Bitcoin experts weigh in
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