Bitcoin market liquidity has hit a 10-month low due to the banking crisis in the US and ongoing regulatory actions. This has led to increased price volatility and higher fees for slippage on US exchanges. While BTC has seen a 45% surge this year, the collapse of crypto-friendly banks like Silicon Valley and Signature has cut USD payment rails and led to a liquidity crisis. As a result, stablecoins are replacing USD pairs, which could indirectly harm investors in the US.
U.S. Banking Crisis Impacts Bitcoin Liquidity Market and Traders