Definition ∞ Global crypto liquidity represents the ease with which digital assets can be bought or sold without significantly affecting their market price across all exchanges and trading venues. This measure accounts for the depth of order books, trading volumes, and the overall availability of buyers and sellers worldwide. High liquidity indicates a healthy and efficient market environment.
Context ∞ The state of global crypto liquidity is a critical indicator of market health and institutional participation. Recent market conditions have seen fluctuations in this metric, impacting price stability and trading costs. Discussions often focus on the factors that influence liquidity, such as regulatory clarity, market volatility, and the operational integrity of major trading platforms.