Why Crypto Market Depth Is Drying Up on Centralized Exchanges

Bitcoin and Ethereum are up this week, but something strange is happening beneath the surface: order-book depth on major centralized exchanges is shrinking even as prices climb. Lucas breaks down the data showing that the average bid-ask spread for BTC on Binance and Coinbase has widened significantly since January 2026, while the number of resting limit orders at the top five price levels has dropped by roughly 30 percent. Luna asks whether this is a legacy of the 2022-2025 regulatory crackdowns or a structural shift toward decentralized venues. They explore the rise of RFQ-based trading, the growing role of institutional OTC desks, and what thinner books mean for retail traders trying to execute market orders. The episode closes with a look at whether the trend reverses if a spot ETF sees net inflows later this year. #Crypto #MarketDepth #OrderBooks #Bitcoin #Ethereum #Binance #Coinbase #Liquidity #BidAskSpread #InstitutionalTrading #OTC #RFQ #DEX #RetailTrading #CryptoExchanges #Finance #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo