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In a sudden and remarkable price surge, Bitcoin skyrocketed to an astonishing $138,000 on the btc/tether trading pair, as reported by exchange data from Binance.US. This unexpected spike sent shockwaves through the crypto market earlier today.
At 6:50 a.m. UTC, prices skyrocketed to those levels briefly before promptly returning to match other bitcoin spot markets. Meanwhile, other trading pairs for bitcoin remained unaffected and traded as usual.
It is highly improbable that the surge was a result of a trader willing to pay a premium of almost 450% for bitcoin, especially considering that its current value during the Wednesday morning hours in Europe is slightly above $29,000.
Instead, the unusual surge most likely occurred due to the lack of sufficient liquidity for bitcoin against tether on Binance.US. Market depth data indicates that a $400,000 bitcoin purchase on this trading pair can cause a 2% price increase, whereas it would require a minimum of $842,000 to achieve the same impact on a bitcoin/USD trading pair.
Market depth represents the measure of liquidity within a financial market. According to a recent Kaiko report, Binance.US has experienced a significant 76% decrease in market depth since May, indicating a departure of market makers and traders from the exchange.
