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HomeAnalysisCrypto market outflows reached $55B in August as liquidity dwindled — Bitfinex

Crypto market outflows reached $55B in August as liquidity dwindled — Bitfinex

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TL;DR:

In August, the crypto industry witnessed a significant capital outflow of $55 billion, as reported by Bitfinex, based on the aggregate realized value metric encompassing Bitcoin and Ether alongside the combined supply from top stablecoins. This trend highlighted not only a decline in Bitcoin but also affected Ether and stablecoin liquidity. Bitfinex noted that August marked the largest red monthly candle for BTC since November 2022, indicating a notable -11.29% drop. The analysis emphasized the resurgence of event-based volatility, showcasing how isolated events like flash crashes and legal wins over the SEC had substantial impacts on market prices. Additionally, the report highlighted the outperformance of Bitcoin open interest due to increased institutional interest and observed a decline in Ether futures and options in 2023, underlining patterns of low liquidity in the derivatives market.

Source: Cointelegraph

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