Crypto markets fracture as liquidity islands and capital dispersion emerge amid broad selloff: analysts
Crypto markets are yet to steady after the recent sharp selloff, but analysts say the more notable development has been fragmentation in liquidity and performance across venues and assets rather than a decisive directional reset.
Bitcoin is down over 17% in the last week alone, and trading near the same levels as on the night of President Donald Trump’s election victory, according to The Block’s price page.
Most of the crypto market has mimicked BTC’s slump, with majors like Ethereum (ETH), Solana (SOL) and BNB all down double-digit percentages over the past week.
Liquidity islands
Analysts at the quantitative yield protocol Axis have flagged the emergence of “liquidity islands,” referring to pockets where capital is unevenly…
