Bullish

Crypto Liquidity Drops 30-40% as Institutions Shift to Risk-Managed Asset Allocation Strategies

19:04

Structural liquidity decline of 30-40% on major platforms drives institutional pivot from pure alpha-seeking to prioritizing security, custody, and capital efficiency in crypto.

Woofun AI reports that Bitget CEO Gracy Chen highlighted a structural decline in cryptocurrency liquidity averaging 30-40% since October 10 of last year. While long-term institutional interest remains stable, the approach has shifted toward traditional finance maturity, integrating multi-asset strategies and RWA. Clients now prioritize asset security, transparent custody, and capital efficiency over speculative returns.

WOOFUN AI

Impact Assessment · Quick Read

The structural liquidity contraction signals a maturation phase where institutions treat crypto as a standard asset class rather than a speculative niche. This shift toward risk management and capital efficiency may reduce short-term volatility but could also dampen trading volumes on venues lacking robust custody and compliance infrastructure. The emphasis on RWA integration suggests growing convergence between traditional finance and digital assets.
Generated by WOOFUN AI · For reference only, not investment advice

Comments

Me
Replying to @User
0/800

No comments yet.

Notifications

Sign in to view messages
View all messagesManage subscriptions