In the cryptocurrency market, every transition from a bear market to a bull market is essentially a drastic change in the state of market liquidity.

The extreme lack of liquidity usually marks the arrival of the market bottom. This situation is often accompanied by a thorough wash-out process, and many retail investors are forced to exit the market because they cannot bear the pressure. This shuffle is the result of natural selection in the market and a necessary process to lay the foundation for the next round of sharp rises. Without this stage of market purification, it would be impossible to see the subsequent amazing increase, reaching dozens or even hundreds of times of appreciation.

Therefore, it is crucial for investors to understand the cyclical changes in liquidity in the market. It not only affects the market sentiment and price trends, but also is a key factor in grasping investment opportunities and realizing capital appreciation.