``` Crypto market outflows reached $55B in August as liquidity dwindled — Bitfinex - Coin Postman
Your reliable guide in the crypto world, providing comprehensive news and analysis on all things related to cryptocurrency.

Crypto market outflows reached $55B in August as liquidity dwindled — Bitfinex

  • Capital outflows in the crypto industry reached $55 billion in August, according to a report released by crypto exchange Bitfinex.
  • The analysis is based on the aggregate realized value metric, which measures the realized capital of Bitcoin (BTC) and Ether (ETH) with the combined supply from the top five stablecoins: Tether (USDT), USD Coin (USDC), Binance USD (BUSD), Dai (DAI), and TrueUSD (TUSD).
  • About $55 billion was drained from the crypto markets over the past month.
  • This capital outflow affected not only Bitcoin but also Ether and stablecoin liquidity.
  • August was the largest red monthly candle for BTC since the bear market bottom was formed in November 2022, with a decrease of 11.29%.
  • Event-based volatility has returned, where isolated events have a significant impact on prices and overall market movements.
  • In August, a flash crash and Grayscale’s partial legal victory over the Securities and Exchange Commission had a significant impact on Bitcoin prices.
  • The liquidity crunch in the market has allowed isolated events to have a bigger impact on market movements.
  • Bitcoin open interest has outperformed the crypto markets due to increased institutional interest and wash trading on some exchanges.
  • Ether futures and options have declined significantly in 2023, to $14.3 billion per day, a steep decline of almost 50% from the two-year average.
  • Low liquidity patterns in the derivatives market mirror the trajectory seen in open interest across both futures and options.

Magazine: How to protect your crypto in a volatile market — Bitcoin OGs and experts weigh in

Share this article
Shareable URL
Prev Post

Solana traders prepare for FTX-induced sell pressure on SOL — Is it premature?

Next Post

North Korean crypto hacks down 80% but that could change overnight: Chainalysis

Leave a Reply

Your email address will not be published. Required fields are marked *

Read next