Bitcoin Still Below Pre-Oct. 10 Liquidation Levels After One Year, With Spot Liquidity Down 27%
Summary
- Kaiko said Bitcoin perpetual futures open interest (OI) is about 16% below the level seen before the Oct. 10 mass liquidation event.
- Dollar-denominated order-book liquidity in Bitcoin's spot market has fallen 27% from before the liquidation event, reducing the volume available to absorb large orders.
- Kaiko said leverage has declined faster than liquidity since the liquidation event, leaving leverage per dollar of market liquidity about 20% lower.
Forecast Trend Report by Period
Bitcoin's market has yet to return to pre-liquidation levels in either derivatives positioning or spot liquidity, even a year after the mass liquidation event last Oct. 10, according to Kaiko.
On Oct. 19, the digital-asset data firm wrote on X, formerly Twitter, that open interest in Bitcoin perpetual futures, measured in BTC terms, remains about 16% below the level seen before the Oct. 10 liquidation event last year.
Dollar-denominated order-book liquidity in the spot market is also down 27% from that period. That means the volume of buy and sell orders available to absorb large trades has shrunk.
Kaiko said leverage fell faster than liquidity after the liquidation event. Leverage per dollar of market liquidity is now about 20% lower than it was before Oct. 10 last year.
In other words, excessive market leverage has largely been reduced, but spot-market liquidity has not fully recovered.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.