Cryptocurrency markets continue to experience thin liquidity following the October crash, raising concerns about potential sharp price fluctuations. Bitcoin's market depth has decreased by 33%, while Ethereum's has fallen by 25%, indicating reduced capacity to absorb large trades without significant price impact. This environment poses increased risks for traders, as lower liquidity can lead to more volatile price movements, making it challenging to execute large transactions without affecting market prices.
Crypto Liquidity Remains Low, Heightening Volatility Risks
Disclaimer: The content provided on Phemex News is for informational purposes only. We do not guarantee the quality, accuracy, or completeness of the information sourced from third-party articles. The content on this page does not constitute financial or investment advice. We strongly encourage you to conduct you own research and consult with a qualified financial advisor before making any investment decisions.
