Bitcoin: Liquidity Explodes By 76%!

In 2024, the Bitcoin market reached a significant milestone: with average monthly volumes reaching $2 trillion, the liquidity of the leading crypto rose by 76% compared to last year. This spectacular rise reflects a maturing crypto market adapting to global uncertainties. The team of analysts at Coinbase Institutional and Glassnode explains that this expansion was accompanied by several structural changes, including a more stable Bitcoin derivatives market, although price volatility is still present.

Increasing liquidity despite the lack of clear direction

The increase in Bitcoin liquidity is a testament to a market in full transformation. On average, Bitcoin’s transaction volume reached $2 trillion each month, a feat analysts attribute to rising on-chain activity and increased demand for crypto derivatives.

According to Coinbase Institutional and Glassnode, this growth reflects a more sophisticated and firmly established market structure. Despite this, crypto prices struggle to find a clear direction.

Analysts point to several factors, including economic and political uncertainties, with the U.S. elections on the horizon.

These events influence not only the trajectory of Bitcoin but also the entire crypto market.

But for now, prices seem locked in a stable range, even as transaction volumes continue to rise. This dynamic reveals that, although liquidity is exploding, investors remain cautious.

An increasingly mature crypto market

For experts, this explosion of liquidity also marks a key step in the maturation of the crypto market. According to the report by Coinbase and Glassnode, open interest for Bitcoin derivatives maintained an average of $44 billion in the third quarter of 2024, with a large number of long positions cleared.

This phenomenon has “cleaned” the market, eliminating excessive speculative positions and creating healthier conditions for a potential future rally.

Moreover, the absence of marked price fluctuations does not mean the market is stagnating. On the contrary, signs of lasting stabilization and rising liquidity could signal a return of confidence on the horizon.

In this context, some investors prefer to wait for clearer signals before positioning themselves for the next upward movement. According to researchers, this persistent climate of “fear” could well lay the groundwork for a potential rally in the coming months. Meanwhile, Ripple is developing a plan to dominate the crypto space.