Bitcoin Was a Winner During the U.S. Banking Crisis, but Illiquidity Prevents It From Being a USD Hedge

When liquidity is low in any financial market, volatility is high in both directions. Prices have less support on both the downside and the upside. In this instance, the narrative of bitcoin as a hedge against financial calamity gave BTC the push it needed. But there was little upside resistance to hurdle over: BTC market depth, the number of orders waiting to be filled on an order book, reached 10-month lows this week – that’s lower than levels seen since the collapse of the FTX exchange and sister firm Alameda Research.