• CoinStic
  • Posts
  • Trade Volume in US Bitcoin (BTC) Markets Picking Up, According to Analytics Firm Kaiko

Trade Volume in US Bitcoin (BTC) Markets Picking Up, According to Analytics Firm Kaiko

August 01, 2024

Liquidity across crypto exchanges has surged this year, according to the digital asset analytics firm Kaiko.

Kaiko notes in a new analysis that an increase in trading volume and improving sentiment drove that jump in liquidity, which has been particularly prevalent for Bitcoin (BTC) markets in the US.

“The approval of spot BTC ETFs in the US this year has likely contributed to the increase, as more institutional firms participate in the market. US exchanges now account for over 60% of BTC’s 1% market depth, up from around 45% at the beginning of 2023.”

The analytics firm also notes that Bitcoin dominance relative to altcoins has jumped on US exchanges but reduced on offshore markets.

“Historically, BTC dominance has been higher on US platforms due to higher institutional participation in the US, with traders preferring BTC over riskier altcoins. Interestingly, despite BTC’s price decline in Q2, BTC’s share on US markets continued increasing, suggesting that the launch of spot ETFs could further exacerbate this trend.”

Kaiko isn’t the only firm to highlight this trend: Ki Young Ju, the chief executive of the analytics platform CryptoQuant, recently noted on the social media platform X that Bitcoin is entering the US.

BTC is trading at $66,381 at time of writing.

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Generated Image: DALLE3