Recently, trading depth seems to have improved, with the bid-ask spread of mainstream cryptocurrencies narrowing, and the impact costs of large transactions becoming less intimidating. But does this mean a genuine liquidity revival, or is it just a short-term rebound?
It’s worth noting that exchange trading volume data has indeed increased, but whether the actual trading depth can support larger positions coming in and out is the key. The frequency of arbitrage opportunities, the degree of spread narrowing, and the speed of institutional capital returning are all important indicators to assess whether liquidity has truly improved.
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ApeShotFirst
· 01-06 01:53
Another story of liquidity recovery? I think you're overthinking it.
A rebound is a rebound, but have institutions really come back? I haven't seen it.
A narrowing spread doesn't mean much; this wave is probably just trying to trick my FOMO again.
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GasFeeWhisperer
· 01-05 05:26
The spread has indeed narrowed quite a bit, but I still don't trust it... It's all institutions playing tricks there.
Deep analysis is good, but we'll see when they start to sell off.
Are institutions really flowing back? Suspicious.jpg
This liquidity recovery is crazy, it feels like a correction could happen at any time.
Let's wait and see if it drops back later; it's too early to say now.
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ForkInTheRoad
· 01-04 07:38
Uh, does the narrowing of the spread mean liquidity is recovering? I still feel it's superficial.
Where is the real depth? Big players can wipe it out with a single move.
Are institutions really coming back? I can't see it.
Most of the rebound is short-term, don't overthink it.
The data looks good, but you'll know when they really start placing large orders.
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HodlVeteran
· 01-04 04:08
Don't tell me liquidity is recovering. I saw such a "recovery" during the 2017 bull market. What happened then? Those who went all-in directly became bagholders. Trading volume looks good? That's just a facade. If you really throw in a large position, the spread will immediately give you a reality check. When institutional funds truly start to flow back in, retail investors like us will have already been harvested [dog head]
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AirdropATM
· 01-03 13:52
Good data doesn't necessarily mean the market is truly good. I'm still waiting for the moment when institutions put real money into the market.
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AirdropHermit
· 01-03 13:50
Hey, what do you mean by liquidity recovery? I think it's just a fleeting rebound.
Wait, have institutional funds really come back? It feels like it's just retail investors hyping themselves up.
Has trading depth improved? Bro, try placing a big order and see.
The spread narrowing is real, but what does that really mean... Maybe no one is trading in a bear market.
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AirdropHustler
· 01-03 13:45
Short-term rebounds might just be smoke screens; where is the real depth?
The narrowing of the spread sounds good, but I remain skeptical; it depends on whether institutions are really putting in real money.
Trading volume data looks good, but the true test is the depth of the order book that can actually be filled.
I think this liquidity improvement is just a fake-out; let's wait and see the institutions' attitude before making judgments.
Depth data can't be fooled, but exchange data can be heavily manipulated.
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MEVSandwich
· 01-03 13:43
Honestly, I'm quite happy to see the trading volume increase, but can depth really be faked... I have my doubts.
Have institutional funds really come back? It feels like a false hype, waiting to be proven wrong.
I did see the spread narrowing, but can this last? That's the real question.
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Rekt_Recovery
· 01-03 13:28
ngl the spreads tightening feels like copium to me... seen this movie before right before the next liquidation cascade lol
Is market liquidity really recovering?
Recently, trading depth seems to have improved, with the bid-ask spread of mainstream cryptocurrencies narrowing, and the impact costs of large transactions becoming less intimidating. But does this mean a genuine liquidity revival, or is it just a short-term rebound?
It’s worth noting that exchange trading volume data has indeed increased, but whether the actual trading depth can support larger positions coming in and out is the key. The frequency of arbitrage opportunities, the degree of spread narrowing, and the speed of institutional capital returning are all important indicators to assess whether liquidity has truly improved.