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.
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.