Crypto’s Hidden Structural Risk: The Illusion of Liquidity

Cryptocurrency’s rapid growth has drawn parallels with traditional finance, but a key difference lies in its liquidity structure. While market volumes surge, the illusion of deep liquidity persists, masking a fragile system susceptible to volatility. 80% of crypto trading is done through automated bots and algorithms, making this ‘illusion’ even more concerning as sudden shifts in sentiment trigger significant price fluctuations. Arthur Azizov, Founder and Investor at B2 Ventures, explores how this dynamic plays out in the crypto market, offering solutions for a stronger, more robust system.