Cryptocurrency markets show signs of calm after a major wipeout in October, but liquidity remains low, leading to thinner markets and sharper price swings. Bitcoin and Ethereum experienced a significant decline in liquidity, with Bitcoin’s average depth dropping by nearly one-third. Altcoins like SOL, XRP, ATOM, and ENS saw a deeper liquidity collapse but quickly recovered. Market makers are cautious due to macro uncertainty, with $360 million in net outflows from digital asset investment products. The liquidity void in the crypto market poses risks of exaggerated price reactions and potential liquidation cascades.

Read more at Yahoo Finance: Crypto Liquidity Still Hollow After October Crash, Risking Sharp Price Swings