What Was the Alameda Gap?
After the collapse of FTX and Alameda Research, a “gap” in liquidity emerged in the Bitcoin and crypto market. Alameda, a major market maker, had provided significant liquidity before its downfall.
Gap No Longer Exists
Crypto research firm Kaiko reports that the Alameda Gap has been filled. Market depth has almost fully recovered to pre-FTX levels.
Factors Contributing to Recovery
- Bitcoin’s price surge, which has outpaced market liquidity since the approval of Spot Bitcoin ETFs.
- Increased trading activity and improved sentiment.
Bitcoin Outperforms Gold
- The Bitcoin-to-Gold ratio is approaching its all-time high, indicating that Bitcoin is outperforming Gold.
- Bitcoin ETFs have attracted significant inflows, while Gold ETFs have seen outflows.
Bitcoin as a Store of Value
- Kaiko suggests that investors may be moving towards Bitcoin as a new global store of value.
- Bitcoin advocate Samson Mow believes that people will eventually substitute Gold for Bitcoin.
