Definition ∞ Liquidity indicators are metrics used to assess the ease with which an asset can be bought or sold without significantly affecting its price. These indicators include trading volume, bid-ask spread, and market depth. High liquidity suggests a healthy and efficient market where large transactions can occur smoothly. For digital assets, these metrics are crucial for market stability.
Context ∞ Cryptocurrency news frequently employs liquidity indicators to analyze market health, assess trading conditions, and predict potential price volatility. Reports may highlight declining liquidity as a warning sign for increased price swings or difficulty in executing large orders. Understanding these indicators helps interpret news on market efficiency and the operational risks associated with digital asset trading.
Blockchain Knowledge
Cryptocurrency Foundation
Cryptospace Newsfeed
