Bloomberg: Long-term lack of liquidity in the cryptocurrency market leads to recent significant fluctuations in the price of Bitcoin.

According to a BlockBeats report on November 1st, the long-term lack of liquidity in the cryptocurrency market is a key reason for the recent 10% fluctuations in Bitcoin prices. FalconX's research team found that although the recent recovery in trading activity was partially due to expected stimulus from Bitcoin exchange-traded funds (ETFs), market depth this year is still at its lowest point. They measured market depth by looking at the average trading volume of Bitcoin trading activity within 24 hours (within 1% of the current price). Last November, blockchain data company Kaiko referred to the overall decline in liquidity as the "Alameda Gap". Alameda Research is the trading department of Sam Bankman-Fried's failed FTX digital empire. Kaiko researchers said the persistent impact is largely due to the huge losses suffered by market makers after the collapse of FTX. According to data compiled by cryptocurrency research firm Delphi Digital, total trading volume on centralized and decentralized exchanges in the spot market is at its lowest point in years. Delphi Digital analyst Michael Rinko said, "The fundamental reason why liquidity continues to flow out of the cryptocurrency market instead of flowing in is high interest rates."