Coinbase reports that Bitcoin liquidity remained stable following the SEC lawsuit against Cumberland. This statement follows Kaiko's report noting a liquidity drop.

Kaiko: Liquidity Drop and Market Depth

Kaiko reported a 46% decline in Bitcoin liquidity on the Coinbase exchange at 11:00 AM UTC on October 10, indicating a 2% market depth drop. Such a decrease suggests that even smaller orders could shift the price by 2%. Liquidity on the sell side decreased, while the buy side saw an increase.

Cumberland's Position in Response to Lawsuit

Cumberland contested Kaiko’s analysis, asserting that their operations remained unchanged following the SEC lawsuit. "We are not making any adjustments to our operations or liquidity assets due to this lawsuit," the company reported.

Market Impact and Following Expectations

Kaiko later stated that liquidity has since recovered, suggesting that the initial drop might be linked to changing market expectations. Monitoring market depth shifts and liquidity fluctuations will remain crucial for traders.

The situation with Bitcoin liquidity remains closely watched despite key participants asserting stability. The SEC lawsuit's impact on market expectations continues to interest analysts and traders.