Definition ∞ Fresh liquidity refers to new capital entering a market or financial system. It signifies an increase in available funds that can be used for investment or trading activities. This influx of new money can impact asset prices, market depth, and overall economic activity.
Context ∞ The presence or absence of fresh liquidity is a significant factor influencing market dynamics, particularly in volatile asset classes like digital currencies. News reports often focus on whether institutional or retail capital is entering the market, as this can signal potential price appreciation or increased trading volume. Monitoring the flow of fresh liquidity provides insight into investor sentiment and the underlying health of market participation.