Cryptocurrency liquidity remains weak following the October crash.

Depth Issues in Crypto Markets

Cryptocurrency order book depth remains significantly below the levels seen at the beginning of October. This situation indicates that market makers are withdrawing, revealing that this is not just a temporary degradation.

Some assets like Solana (SOL), Ripple (XRP), Cosmos (ATOM), and Ethereum Name Service (ENS) have shown a rapid recovery after the panic. However, it is pointed out that the liquidity in key groups is significantly lower than it was before the collapse.

Market Conditions and Liquidity Issues

Additionally, large Exchange-Traded Fund (ETF) outflows, shifts in Federal Reserve interest rate expectations, and weak confidence regarding market direction are keeping market makers' appetite under pressure. As a result, the crypto markets have become thin, fragile, and more prone to exaggerated reactions.