BTC Liquidity

Definition ∞ BTC liquidity refers to how easily Bitcoin can be bought or sold without significantly affecting its market price. High liquidity means large quantities of Bitcoin can be exchanged rapidly with minimal price impact. This metric indicates market efficiency and the depth of available trading volume across various platforms.
Context ∞ Understanding BTC liquidity is crucial for assessing market stability and the feasibility of large institutional trades in digital assets. Fluctuations in liquidity often appear in crypto news, influencing investor confidence and trading strategies. The expansion of regulated trading venues and derivative products aims to augment Bitcoin’s overall market liquidity.