Market Liquidity

Market liquidity refers to how quickly an asset can be traded with limited price impact. It is shaped by the supply of capital, leverage, market depth and policy expectations. Liquidity in crypto markets has recently tightened following deleveraging in Q2, leaving Bitcoin to contend with thin summer trading and a test of support from key buyers. Federal Reserve policy, rising short-term interest rates in Taiwan, and the market structure of tokenized stocks and real-world assets (RWAs) are also influencing capital allocation across markets. Continued monitoring can help determine whether price volatility, trading risks and market stress are building.