Liquidity Stress, Insolvency Rumors Add Pressure

[kevin1]

During the sell-off, BTC/USDT perpetuals traded 5% below spot, a sign of strained liquidity. Normally attractive for arbitrage, the gap remains unresolved, with market makers cautious amid insolvency rumors and thin weekend orderbooks.

With US bond markets closed Monday for a national holiday, traders expect continued instability until liquidity normalizes. Whether $105K holds as support will be the key question into next week’s CME futures open.

[Nahid10]

Insolvency whispers always intensify sell-offs — the crypto market thrives on sentiment and panic cycles.

[EmTeam]

Liquidity crunches expose weak platforms; only exchanges with solid reserves will survive such stress.