TechFlow news, this morning cryptocurrency data provider Kaiko released a new research report stating that oversupply has been a hot topic in the crypto market this summer.
The report shows that the Mt. Gox bankruptcy case still has approximately 46,000 bitcoins (worth over $2 billion) left to be distributed to creditors, which could become a major source of market concern.
In addition, bitcoins held by governments such as those of the United States, the United Kingdom, and China, as well as holdings by institutions like Tesla, may also create potential selling pressure in the coming months.
Kaiko believes that relying solely on single metrics such as trading volume makes it difficult to comprehensively assess market liquidity. The report recommends analyzing multiple dimensions including market depth, volume-to-liquidity ratios, and slippage.
The study found that during the sharp decline in the crypto market in early August, slippage indicators across exchanges changed significantly, reflecting increased market stress.
Kaiko stated that although crypto market liquidity has improved since the FTX collapse, caution is still warranted regarding the potential impact of large position liquidations.
