Bitcoin Liquidity Can Deteriorate Rapidly Under Market Stress, BitGo Says
Bitget2026/10/23 22:05- BitGo’s analysis found bitcoin remains the most liquid digital asset, but market stress can rapidly erode depth and raise execution costs.
- As of August 2026, bitcoin’s spot-to-derivatives volume ratio was approximately 0.074, with derivatives volume roughly 13 times spot volume.
- Exchange fragmentation and liquidation cascades can drain usable liquidity, making high reported trading volume an unreliable indicator of execution quality.
- Institutions should model slippage across venues, stress-test execution and consider OTC desks when orders represent a meaningful share of near-market exchange depth.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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