Kaiko: In 2024, BTC 1% market depth will increase by more than 85% to 370 million US dollars, and the "Alameda Gap" will be filled

Kaiko noted in its recently released market analysis that despite the deterioration of risk sentiment in December, Bitcoin still rose 118% at the close of 2024, marking the third best year since 2018 and the fifth best year in the past decade. It outperformed most major assets, trailing only MicroStrategy, Nvidia and Palantir Technologies. Trading activity also saw strong growth, indicating that the rally has more than enough momentum. The total cryptocurrency trading volume of more than 30 CEXs reached its highest level since 2021. Last year, BTC 1% market depth increased by more than 85% to about $370 million, which is comparable to the level before FTX. This growth was mainly due to the launch of spot ETFs in the United States, as market makers were more motivated to provide liquidity due to increased trading volume and lower hedging costs. As a result, the "Alameda Gap" (the liquidity gap left after the FTX collapse) was filled in 2024. Additionally, companies such as KULR Technology, Rumble, and Genius Group began adding Bitcoin to their balance sheets in the fourth quarter. MicroStrategy, the largest Bitcoin holder, increased its holdings from 252,220 BTC in September to 446,400 BTC in December. Despite a pullback in December, MicroStrategy still outperformed Bitcoin and other BTC investments throughout the year. However, December options data showed that investor sentiment on MicroStrategy has shifted from extremely bullish to neutral, suggesting that investor interest is cooling.