Bitcoin

Change

You can also read this news on COINTURK NEWS: <a href="https://en.coin-turk.com/coinbase-addresses-bitcoin-liquidity-amid-sec-lawsuit/" data-wpel-link="internal">Coinbase Addresses Bitcoin Liquidity Amid SEC Lawsuit</a> 
<a href="https://en.coin-turk.com/kucoin-and-founders-face-indictment-and-lawsuit/" data-wpel-link="internal">Coinbase</a> announced that there has been no significant change in Bitcoin (BTC) liquidity following a lawsuit filed by the U.S. Securities and Exchange Commission (<a href="https://en.coin-turk.com/stablecoin-market-on-the-rise-tether-draws-attention-with-environment-friendly-projects/" data-wpel-link="internal">SEC</a>) against Cumberland. The company aimed to mitigate concerns raised by a report from the Paris-based firm Kaiko, which noted a decline in liquidity. In an email to CoinDesk, Coinbase stated, “We did not see a 2% change or decline in BTC-USD depth throughout October,” asserting that liquidity remained stable. Kaiko’s report indicated a sharp drop in liquidity on October 10th following SEC’s allegations against Cumberland. 
<h2 style="text-align: justify" id="strong-kaiko-liquidity-decline-and-market-depth-strong">Kaiko: Liquidity Decline and Market Depth</h2> 
Kaiko reported a 46% decline in Bitcoin liquidity on Coinbase at 11:00 AM on October 10th. This liquidity, measured by a 2% market depth, is calculated based on buying and selling orders concentrated around the average price. This decline implies that even smaller order sizes could move the price by 2%. 
<img loading="lazy" loading="lazy" decoding="async" class="aligncenter size-full wp-image-397978" src="https://coin-turk.com/wp-content/uploads/2024/10/Coinbase.jpeg" alt="" width="1120" height="605"> 
Kaiko noted a decrease in liquidity on the selling side, while an increase was observed on the buying side. This situation suggests that market makers might be adjusting their positions in anticipation of a price drop. The firm also mentioned that liquidity has decreased on other exchanges, indicating that overall liquidity on U.S.-based exchanges has not yet returned to pre-lawsuit levels. 
<h2 style="text-align: justify" id="strong-cumberland-no-change-in-operations-strong">Cumberland: No Change in Operations</h2> 
Cumberland disagreed with Kaiko’s analysis in a statement to CoinDesk, emphasizing that there are no changes in their operations following the SEC lawsuit. The company stated, “We are making no changes to our operations or the liquidity assets we provide.” Kaiko reiterated in a recent statement to CoinDesk that liquidity has since recovered, suggesting that the initial drop may have been related to changes in market expectations. 
Monitoring how market depth changes and how liquidity fluctuations impact market expectations will remain an important focus for traders. 
The post <a href="https://en.coin-turk.com/coinbase-addresses-bitcoin-liquidity-amid-sec-lawsuit/" data-wpel-link="internal">Coinbase Addresses Bitcoin Liquidity Amid SEC Lawsuit</a> appeared first on <a href="https://en.coin-turk.com" data-wpel-link="internal">COINTURK NEWS</a>.

Coinbase Addresses Bitcoin Liquidity Amid SEC Lawsuit

Table of Contents

COINTURK NEWS

Other articles published on Oct 17, 2024

As Bitcoin, Solana & Doge Price Skyrockets, Investors Are Taking Profit & Moving To This SUI Meme...

Ripple CLO’s Update On Battle with the SEC As XRP Army Speculates

The ‘memecoin supercycle’ theory is converting crypto unbelievers

BlackRock Calls Bitcoin "A Unique Diversifier" in Its New Report

Nansen integrates Solana analytics, touts memecoin alpha

The Man Behind The SEC X Hack Was Arrested By FBI

Join our free newsletter for daily crypto updates!