Bitcoin Plunges Below $109,000 - Liquidity Squeeze Hammers Crypto Markets
Digital assets face brutal selloff as market liquidity evaporates
The Crypto Liquidity Crisis
Bitcoin's dramatic fall below the $109,000 threshold signals deeper troubles in cryptocurrency markets. Trading volumes have collapsed across major exchanges while bid-ask spreads widen to alarming levels.
Market makers retreat as regulatory uncertainty combines with traditional finance's seasonal capital rotations. The usual institutional buyers have vanished from order books, leaving retail traders holding increasingly illiquid bags.
This isn't your typical crypto volatility—it's a fundamental liquidity breakdown that makes even the most bullish analysts nervous. When the music stops in traditional markets, crypto always discovers it's been dancing without a chair.
Yet somehow, Wall Street will still find a way to blame 'speculative excess' while quietly accumulating positions at fire-sale prices.