Bitcoin Market Depth Grows: Boosting Traders Confidence
Bitcoin fluctuates between $40,000-$43,000 as market depth grows, increasing traders optimism.
Bitcoin (BTC) has been undergoing price fluctuations in the past 48 hours, trading between $40,000 and $43,000 and triggering debates about its future. Despite price changes, Bitcoin remains a dominant force in the market.
According to Kaiko's data, Bitcoin's market depth has slightly increased since December. Market depth is the amount of buy and sell orders within 2% of Bitcoin's current price. It shows how much people want to buy or sell at different prices. Although the market depth has grown, it cannot be compared to its condition before the FTX collapse. This might mean people are still cautious about trading Bitcoin heavily.
An increase in market depth can be good, showing more trading activity and making Bitcoin more appealing to investors. This helps trades happen more smoothly. However if the increase is due to speculation, it can cause sudden and big price changes.
Traders seem hopeful about Bitcoin's future. This is shown by the put-to-call ratio, which has gone down from 0.52 to 0.46 recently. A lower ratio and reduced Implied Volatility (IV) suggest traders expect less dramatic price changes in the short term. This could lead them to use trading strategies that work better in stable markets.
At the moment, Bitcoin is priced at $43,361.83, having increased by 2.88% in the last 24 hours.
