Is Bitcoin Heading Toward A Liquidity Crisis Without Equal? | HackerNoon
Briefly

Cryptocurrency has gained significant traction recently, attracting diverse stakeholders including individual investors and institutions. Many accredited investors are diversifying into tokens beyond top performers, reflecting a broader acceptance of digital assets. However, liquidity challenges threaten market stability, as demand surges while supply remains constrained, leading to increased volatility. The dynamics of liquidity influence investors' strategies, especially given that major cryptocurrencies like Bitcoin maintain a higher liquidity profile due to their market adoption, allowing easier transactions without drastic price fluctuations. Overall, future market behavior will be shaped significantly by liquidity conditions.
Over 74% of accredited investors are allocated to tokens beyond top performers, borrowing against crypto assets and custody of NFTs.
The cryptocurrency market doesn't have sufficient cash on hand to meet demand without causing values to plunge.
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