Market Liquidity Significantly Tightens
Recent data analysis reveals that the total internal Bitcoin flow across exchanges has dropped to approximately 14,000 BTC, marking the lowest level since 2022. This metric is a key indicator of market-making activities and short-term capital movements within exchanges.
Continued Decline in Internal Flow
The ongoing decline in internal flow indicates that market participants are becoming more cautious, with liquidity gradually drying up. At Binance, internal flow has approached historical lows, hovering around 2,700 BTC.
Market Enters 'Liquidity Pause' Phase
This trend typically suggests that investors are favoring long-term Bitcoin holding over frequent trading or arbitrage. Additionally, order books are thinning, and the market's sensitivity to price shocks is increasing.
- Bitcoin exchange internal flow drops to 14,000 BTC
- Binance internal flow nears historical lows
- Liquidity tightens with thinning order books
- 'Liquidity pause' may precede significant market moves
Historically, this 'liquidity pause' often precedes major directional shifts in the market. While the market may remain subdued in the short term, a liquidity recovery could trigger sharp price movements.