I have been in the circle for several years, and I have never seen such poor liquidity in the past six months! Why has it deteriorated?
There are many reasons:
Financing difficulties make it difficult for companies to obtain funds, further affecting the liquidity of the market;
High transaction costs inhibit investors' willingness to trade, resulting in a decline in market liquidity;
Foreign capital withdrawal leads to capital outflow from the market, affecting liquidity;
Changes in the macroeconomic environment will also affect market liquidity, such as rising interest rates and slowing economic growth.
In addition, there is another major reason: blockchain funds are dispersed, and the popularity of various chains dilutes the hot money in the secondary market.
The market is becoming more and more standardized, and we can no longer see the crazy gains of the last bull market. I don’t know how many big guys in the last bull market will be washed off by this round of bull and bear markets? The lack of liquidity has made the entire market somewhat powerless, and it also requires us to be more rational about investment, rather than blindly following the trend.
I hope the market will regain its vitality as soon as possible and usher in a healthier development again.