Bitcoin liquidity hits 10-month low as crypto prices continue to drop.

Bitcoin market liquidity has dropped to a 10-month low due to the ongoing regulatory actions against crypto companies and the bank run in the United States. The collapse of crypto-friendly banks has removed important U.S. dollar payment rails for crypto, leading to a liquidity crisis, especially on U.S. exchanges. The liquidity crunch has also led to increased price volatility and higher slippage fees for traders. Stablecoins are replacing U.S. dollar pairs, but it has an adverse effect on liquidity in the United States and indirectly harms investors there.