Kaiko Predicts Limited BTC Impact from Mt. Gox Sales, While BCH Faces Higher Volatility
CryptoNewsTerminal Staff03 Jun, 2024
Kaiko Predicts Limited BTC Impact from Mt. Gox Sales, While BCH Faces Higher Volatility
Kaiko, a crypto research firm, has released a report analyzing the potential impact of Mt. Gox's Bitcoin (BTC) and Bitcoin Cash (BCH) sales on their respective markets. The firm suggests that BTC will likely experience minimal downward price impact, while BCH could face more significant price swings due to its lower liquidity. According to Kaiko, BTC's average daily market depth reaches $255 million, whereas BCH's is only $9 million. This indicates a substantial difference in liquidity between the two cryptocurrencies. Kaiko also noted that BCH's market depth is considerably lower than its September 2021 levels, when prices were comparable to current levels. Despite the disparity in liquidity, both BTC and BCH have witnessed improvements in their market depths since the FTX collapse, returning to pre-collapse levels. The report highlights that the sale of Mt. Gox's coins could potentially trigger price volatility in both markets, but the impact on BCH is expected to be more pronounced due to its lower liquidity.
