A lesser-followed market metric is providing evidence that Bitcoin’s latest rally was supported by meaningful demand rather than being driven by a handful of oversized trades.
Bitcoin climbed almost 25% last week, breaking above $80,000 for its strongest weekly performance in more than three years. The move was supported by factors including robust ETF inflows and the U.S. Treasury’s announcement that it would increase bond buybacks.
But another indicator offers a useful test of the rally’s underlying strength: order-book liquidity, or market depth. The metric shows how much buying and selling interest is available close to the current price and indicates whether large orders can be executed without causing significant price movements.
When prices rise alongside strong liquidity, it generally suggests that substantial capital is supporting the rally. A price increase accompanied by thin liquidity can tell a different story, as a relatively small number of large trades may be enough to push the market higher.
Recent data from major cryptocurrency exchanges tracked by CoinDesk Research suggests Bitcoin’s latest advance took place in a relatively liquid market.
On Aug. 18, when Bitcoin started climbing from around $64,000, average 0.5% market depth across major spot exchanges was approximately $9.6 million. This figure represents the combined value of buy and sell orders positioned within 0.5% of Bitcoin’s current price.
The reading was close to the roughly $9 million record seen Jan. 1, when BTC was trading near $88,000. It also exceeded the approximately $8 million recorded in October, when Bitcoin was trading above $120,000 and setting record highs.
By Aug. 25, as Bitcoin reached $80,000, 0.5% market depth had eased to around $8.7 million. Despite the decline, the level remained within typical market fluctuations. Liquidity measured within 1% and 2% of the price showed a broadly similar pattern.
CoinDesk Research said top-of-book liquidity remained largely steady during the rally. Although liquidity was slightly weaker on Aug. 25, the change was still within normal variation, with no significant thinning of orders within 0.5% of the midpoint.
That backdrop suggests Bitcoin’s roughly 24% advance toward $80,000 was driven by genuine demand being absorbed by the market rather than a sudden move through a thin order book.
The finding is particularly notable because August is traditionally a period of weaker liquidity across financial markets. Trading desks often reduce activity during the Northern Hemisphere summer holiday season.
Despite that seasonal slowdown, Bitcoin’s market depth remained relatively healthy during its major advance. This indicates that substantial orders were being absorbed without creating significant gaps in liquidity.
Ether and Solana showed comparable trends, with their 0.5% market-depth levels on Aug. 25 also above their October readings.
Liquidity could improve further as traders return from summer holidays. Stronger market depth could create more favorable conditions for larger trades, particularly if investors continue shifting capital toward scarce assets such as Bitcoin and gold amid fiscal and monetary pressures in developed economies.
