Bitcoin’s aggregated 2% market depth has reached a one-year high of $623.40 million as of Nov. 16, indicating a significant increase in liquidity compared to $422 million on Nov. 5. This surge in market depth suggests a growing confidence in the market, with traders and institutions showing a willingness to participate and providing a cushion against price volatility.
The increase in market depth leading up to and following the US presidential election is part of a larger shift in macroeconomic and political conditions. Donald Trump’s election and his administration’s support for Bitcoin and the crypto industry through concrete policies have sparked heightened market activity.
The alignment with the crypto space signals to investors that the regulatory environment could become more favorable, reducing perceived risks and encouraging greater participation. This positive sentiment has led to an enthusiastic response from the market, with traders interpreting the news as a signal for broader adoption and institutional inflows.
The bid versus ask depth reflects a slight imbalance favoring sell orders at $341.81 million over buy orders at $281.59 million. However, this activity did not trigger a significant price correction, indicating strong buyer demand even as Bitcoin crossed $93,000.
The dominance of the US market share in global market depth has played a significant role in driving the surge in liquidity. Despite a slight dip post-election, the US consistently accounted for over 50% of global depth throughout 2024, highlighting the influence of American institutions and traders in shaping market activity.
On an exchange-specific level, Bitfinex has emerged as the leader in global market depth with a 27% share on Nov. 16. This coincides with Bitcoin’s post-election rally, suggesting that Bitfinex has successfully attracted a significant portion of increased trading activity.
In contrast, Binance’s declining market share, hovering between 10% and 15% in November, may be attributed to ongoing regulatory scrutiny. This scrutiny could have deterred institutional players from using the platform despite the overall market optimism.
Overall, the post-US election period has seen Bitcoin’s liquidity reach new highs, reflecting growing market confidence and increased participation from traders and institutions. This shift in sentiment, coupled with favorable regulatory signals, has contributed to a surge in market depth and trading activity, shaping the cryptocurrency market landscape in the months ahead.