Altcoin Liquidity Drying Up as Risk Appetite Declines, Signaling Ongoing Crypto Bear Market

Liquidity is drying up in the altcoin market as appetite for risk declines, according to analytics firm Glassnode.

Key altcoin metrics are at cycle lows, indicating market weakness.

Bitcoin's market liquidity is reaching lows last seen in prior bear markets.

Glassnode data shows the Bitcoin "Hot Supply" metric is similar to 2014-15 and 2018-19 bear markets.

Despite price fluctuations, Glassnode's model indicates a risk-on regime is not happening due to low liquidity.