Report: During the sell-off in March, the bid-ask spread of major exchanges increased significantly

A report by B2C2, an OTC market trader, shows that as the cryptocurrency market crashed in March, the bid-ask spreads of major exchanges widened significantly. It is reported that the bid-ask spread is a classic indicator of market liquidity. The extreme depletion of liquidity began on March 12, when prices of the entire crypto and traditional asset markets fell sharply. The next day, Bitcoin fell below $ 4,000, a 12-month low. The bid-ask spread is measured by a benchmark, usually in single digits. However, according to data from B2C2, between March 12 and 13, the spread of orders to buy and sell 25 bitcoins on three exchanges expanded from 200 basis points to more than 700 basis points. Since March, traders have discovered more arbitrage opportunities, and the spreads on exchanges such as Bitfinex have continued to widen.