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Bitcoin rally held up by strong market depth during push above $80,000
CoinDesk Research said average 0.5% market depth stayed near $9.6 million in BTC on Aug. 18, easing to about $8.7 million by Aug. 25 as the price moved above $80,000.
Bitcoin rose nearly 25% last week to above $80,000, its strongest weekly performance in more than three years, as robust exchange-traded fund inflows and a U.S. Treasury bond buyback announcement helped support the move, CoinDesk reported.
CoinDesk Research focused on order book liquidity, or market depth, as a way to gauge whether the rally reflected broad, size-based demand rather than a few outsized orders. It found that liquidity remained high during the advance, a sign that capital was able to move in size without pushing prices sharply just from thin-book dynamics.
According to the data tracked across major spot exchanges, average 0.5% market depth, measured as the combined value of buy and sell orders within 0.5% of the current price, stood at roughly $9.6 million in BTC on Aug. 18, when the rally began from around $64,000. The figure was around $9 million at the start of January when bitcoin traded near $88,000, and it was higher than about $8 million in October when BTC traded above $120,000.
The same 0.5% depth pulled back slightly to about $8.7 million by Aug. 25 when BTC reached $80,000, but remained within normal variance, suggesting liquidity conditions stayed supportive as traders came back from summer holiday periods.
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