Ether Market Liquidity Drops 20% After U.S. ETF Launch, Prices Plummet
TL;DR
- The liquidity in the $ETH market has dropped significantly since the launch of spot ether ETFs, with a cumulative outflow exceeding $500 million.
- $ETH's price has fallen over 25% to around $2,380, indicating increased sensitivity to large transactions.
Weeks after the debut of spot $ETH exchange-traded funds (ETFs) in the U.S., the liquidity in the ether market has notably declined. The average market depth for $ETH on U.S. exchanges has decreased by 20%, with a staggering 45% drop since its peak in June. This decline has raised concerns about market conditions, as it has become easier to influence $ETH's spot price by 5% in either direction.
Jacob Joseph, a research analyst at CCData, highlighted that while liquidity for $ETH pairs on centralized exchanges remains better than at the start of the year, it has plummeted significantly. The current market conditions, combined with seasonal summer effects, often lead to decreased trading activity, contributing to this liquidity drop. Despite the introduction of $ETH ETFs, which were expected to enhance market liquidity, the reality has diverged.
The 5% market depth, a measure of buy and sell orders within 5% of the mid-market price, typically signifies strong liquidity. However, the cumulative outflow of over $500 million since the ETFs' launch has resulted in a significant price drop for $ETH. As the market navigates these challenges, the question remains: how will this impact the future of $ETH trading?
---
Follow for the latest news! đ
#USDataImpact #dappOSTheFutureofIntents BinanceWeb3Wallet #NFPWatch #CryptoMarketMoves #USNonFarmPayrollReport
