Market Liquidity Surge

Definition ∞ A market liquidity surge describes a rapid and substantial increase in the ease with which a digital asset can be bought or sold without affecting its price. This condition typically involves a sudden rise in trading volume and the depth of available orders on exchanges. It indicates heightened market activity and participant interest.
Context ∞ Market liquidity surges are closely monitored by traders and analysts as they can signal impending price movements or a significant shift in market sentiment. These surges often accompany major news events, technological updates, or significant capital inflows. Understanding the triggers behind such surges is crucial for navigating volatile digital asset markets.