Bitcoin & Euro — a story of price discovery

Based on the market data that we dumped from Binance, Bitstamp, Coinbase and Kraken for the first week of June 2020, there is a clear leader that offers the deepest BTC/EUR liquidity. However, there are some details that should be considered when choosing a suitable trading venue.

Summary

• Those who look for deeper crypto liquidity must look not at trading volume but the other liquidity metrics

• BTC/EUR may appear a mature market with certain liquidity metrics smoothly fluctuating around its average values when the market is calm

• However, the price shock on the 2nd of June has shown that the on-exchange liquidity is fragile that resulted in wider spreads and less depth across all observed exchanges

• Kraken had the deepest BTC/EUR liquidity during the observed period for both retail/B2C and B2B market participants

• Bitstamp has better liquidity for the execution of big orders while other liquidity metrics are comparable with those of Coinbase Prime. Binance is lagging behind.

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