Why is the liquidity in the crypto market "drying up"?
Two main reasons:
💡
Structural dilemma
1️⃣
Consumption downgrade impact
Under the high pressure of global inflation, retail investors' funds shifted from "risk preference" to survival necessities
Cryptocurrency, as an "optional consumer product", was the first to be sold off
2️⃣
Investment market frozen
VC fundraising plummeted 60% → primary market transfusion interrupted → new project valuation ankle cut
Federal Reserve's "higher for longer" policy → institutional funds continued to withdraw from risky assets
Continued high interest rates have made the withdrawal of financial funds have no obvious reversal trend.
🌪️ Liquidity spiral trap
The death cycle of "low trading volume → high slippage → lower trading willingness" is forming!
🚨 Breakthrough conjecture
Regulatory arbitrage: Can compliance narratives such as RWA open the gates of traditional capital?
Technical narrative: BTC's halving cycle and the US national reserve may become the last "policy straw"
Looking forward to a new narrative...
