Binance's trading volumes and liquidity have been decreasing in the first quarter of 2023. This is due to the end of their zero-fee promotion and the recent spate of U.S. banking failures. As a result, Bitcoin's liquidity on Binance has decreased significantly, leading to increased volatility.
This low liquidity has caused thin order books on exchanges, resulting in wild price swings from large orders. Despite favorable conditions, such as a positive CPI report and market expectations of an interest rate cut by the U.S. Federal Reserve, Bitcoin's price failed to rise due to poor liquidity.
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