#Liquidity101 - What you need to know on June 5, 2025 💧
In 2025, liquidity is once again at the center of attention for traders and investors. After the spring volatility, the Fed continues to keep the rate at 5.25%, maintaining tension in the markets. This restrains the influx of liquidity, especially into risky assets.
📉 Crypto: volumes on CEXs remain below the annual average, but DeFi platforms, on the contrary, are coming alive — TVL in Ethereum has increased by 18% since the beginning of May.
📊 Fiat: banking liquidity in the US has slightly recovered after the mini-crisis in March with regional banks. However, access to capital is still expensive.
🌍 Globally: China continues to inject stimuli, reviving Asian markets. The European Central Bank hinted for the first time in a long while at a possible rate cut — a signal towards easing.
🔍 Conclusion: liquidity is not just the lifeblood of the markets, but an indicator of trust and sentiment. In 2025, it is important to not only monitor volumes but also to understand where this flow is coming from.
💡 Question for you: where are you currently looking for liquidity — in CeFi, DeFi, or outside the market?