Bitcoin (BTC) price briefly surpassed $56,000 on Bitfinex, well above levels elsewhere

The price of bitcoin (BTC) on Bitfinex’s perpetual swap market temporarily topped $56,000 on Tuesday — well above prevailing levels elsewhere and prices on the Bitfinex exchange just before or after — amid a flurry of volume at absent Liquidity.

Trading volume on Bitfinex’s BTC PERP market surged to 322 BTC ($9.1 million) between 14:24 and 14:26 UTC, about a quarter of the trading pair’s daily volume.

Some traders’ positions were liquidated amid the flash rally, according to data on Bitfinex’s trading platform.

The move came at the same time as Bitcoin was up 2.5% in other spot markets, as investors reacted to share prices of two banks, Pacwest (PACW) and Western Alliance (WAL), falling amid concerns about the U.S. Banking collapsed by more than 30% System resumed.

At press time, the BTC-PERP pair has a 10% market depth of 110 BTC, meaning that an order to buy 110 BTC would move the price by 10% in that specific market – evidence that liquidity on Bitfinex remains low.

A Bitfinex spokesperson did not immediately respond to CoinDesk’s request for comment. Paolo Ardoino, Bitfinex’s Chief Technology Officer, tweeted: “Liquidity was low at this point. But the system worked as expected. The matching engine processed all orders correctly.”

UPDATE (2 May 2023, 14:40 UTC): Adds a tweet from Bitfinex’s CTO.

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