- A CryptoCompare report shows that liquidity is the key metric that changed during Bitcoin’s volatility in March.
- Bitcoin’s price dropped to $3700 last month, giving important insights into crypto exchanges.
- The first hour of the crash saw Bitfinex provide the most volume, according to CryptoCompare.
Recently, CryptoCompare released its March Exchange Review, in which it emphasized “liquidity” as a key metric that changed during BTC’s extreme volatility in March. On March 12, as Bitcoin prices dropped significantly in a matter of hours, it was Bitfinex that provided more volume, and hence liquidity, for traders.
The review noted:
Despite Binance and OKEx trading the most volume across all markets in broad terms, during the exact moment of the BTC crash (approx. 10:30 am GMT) which began on the 12th, it was Bitfinex that represented the majority of Top-Tier exchange trading volume (across BTC/USD and BTC/USDT markets).
The first hour of the crash saw Bitfinex provide the most volume, according to CryptoCompare. The report further noted that among major exchanges (excluding Coinbase, OKEx and Bitstamp), “between 10:40 am and 11 am, it represented 40% of volume on average among these exchanges.” During the brief period, Bitfinex was handling up to $11.8 million worth of trades per minute.
In response to the findings, a Twitter user said:
When s**t hits the fan, you know where you can get real liquidity. It’s definitely not on those faketown exchanges with such great marketing headed by popular figureheads. -@J0e007
CryptoCompare also said that on March 13, the highest volumes in history on cryptocurrency markets were witnessed, with $75.9 billion in a single day.
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