Bitcoin Rally Chronicles: Triumphing over the Alameda Liquidity Challenge and Outshining Gold
The recent Bitcoin rally news reveals an intriguing turn of events in the cryptocurrency market. A significant topic of discussion in the crypto analytics world has been the ‘Alameda Gap,’ a term coined to describe a liquidity vacuum that occurred following the downfall of the former crypto exchange FTX and Alameda Research. This liquidity gap had a profound impact on the Bitcoin and wider crypto market. During this period, market makers adopted a wait-and-see approach, anticipating trading activity and market sentiment to regain momentum. Crypto analysis firm Kaiko, in its latest newsletter, reported that the Bitcoin market successfully rebounded from this obstacle. The market depth, an important indicator of liquidity, has nearly reverted to its average prior to FTX’s collapse. Kaiko further revealed that the Bitcoin 2% market depth has surged by 40% year-to-date, momentarily eclipsing its pre-FTX average of $470 million. This stellar rise is primarily credited to the surge in Bitcoin’s price, which has climbed at a faster pace than the market liquidity following the SEC’s endorsement of the Spot Bitcoin ETFs in January. The Bitcoin rally news doesn’t end there. Bitcoin has registered a 50% increase year-to-date, reaching unprecedented highs, including a record high of $73,750. Moreover, trading costs have been reduced on leading US crypto exchanges such as Coinbase, Kraken, and Bitstamp, signaling improved liquidity. Another noteworthy Bitcoin rally news is that Bitcoin is overshadowing Gold. This is demonstrated by the Bitcoin-to-Gold ratio progressively nearing its all-time high from November 2021. Since their inception earlier this year, Bitcoin ETFs have drawn in $11 billion, while major Gold ETFs have witnessed outflows. This trend indicates a shift in investors’ preference towards Bitcoin, positioning it as the new international store of value. The Bitcoin rally news underscores the cryptocurrency’s resilience, its ability to overcome market challenges, and its growing acceptance as a sound investment alternative. The rally also highlights the crypto’s capability to outperform traditional safe-haven assets like Gold, further strengthening Bitcoin’s standing in the global financial system.
Not financial advice. Always be safe and secure when dealing with cryptocurrency. Never send anyone your private key. Always Do Your Own Research..DYOR..DYOR..DYOR!
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