Bitcoin's huge rally is masking a drop in liquidity as smaller trades move the market

• Bitcoin's huge price rally this year is masking a decline in market liquidity.
• That means smaller bitcoin trades can have a bigger impact on the world's top cryptocurrency.
• A trade of 462 bitcoins can move the price by 1% versus more than 1,400 bitcoins in January, according to CCData.

Bitcoin has surged 70% so far this year, but market liquidity for the world's top cryptocurrency is drying up.

That means smaller trades can increasingly move bitcoin prices. For example, a purchase of 462 bitcoins ($13 million) at the end of last month was able to move the price by 1% versus more than 1,400 bitcoins ($23 million) in January, according to CCData, cited by the Financial Times.