$BTC
IFP goes into the red zone: the Bitcoin market enters a phase of liquidity exhaustion
Despite the external calm of prices, on-chain data from CryptoQuant indicate a rise in internal risks. The Inter-Exchange Flow Pulse indicator has switched to 'red' mode, signaling a slowdown in capital flows between exchanges.
In fact, the market is entering a phase of liquidity exhaustion. With thin order books, even moderate volumes can cause significant slippage. In such conditions, price becomes sensitive not to the direction of the trend, but to the amplitude of movements.
The situation is exacerbated by a combination of low liquidity and increased leverage. This creates conditions for sharp and unpredictable price jumps — both up and down.
We are in a 'liquidity trap'. Low balances on exchanges are traditionally seen as a bullish factor, but in the current phase, they work against the market: there is little supply, but demand cannot be effectively absorbed. A return of volatility is likely to occur not gradually, but through a sharp impulse.