Liquidity Patterns

Definition ∞ Liquidity patterns are observable trends and behaviors in the availability of assets for trading within a financial market, particularly in the context of digital assets. These patterns describe how easily an asset can be bought or sold without significantly affecting its price. They can be influenced by trading volume, order book depth, and the distribution of market participants. Recognizing these patterns assists in understanding market efficiency and price stability.
Context ∞ News discussing liquidity patterns often pertains to market stability, trading efficiency, and the impact of large transactions on digital asset prices. Changes in these patterns can signal shifts in market participant activity or the health of an exchange. Understanding liquidity is crucial for assessing market risk and trading opportunities.