What is Liquidity?
How much can be bought or sold without materially moving the price.
Bitcoin is the most liquid asset in its field by a wide margin, which is why its price is more meaningful than that of thinly traded tokens.
Liquidity is not constant. It thins during stress precisely when it is most needed, which is how sharp moves become sharper.
Related terms
Volatility
The magnitude of price variation over time. Bitcoin's is high by the standards of every traditional asset…
MarketsOrder book
The list of outstanding buy and sell orders at each price level on an exchange.
MarketsSlippage
The difference between the price you expected and the price you actually got.
This definition is part of the Bitcoin Logical glossary. For the fuller explanation, start with Learn, or see the live numbers on The Bitcoin Signal.