Binance ETH liquidity indicator drops to seven-month low

Binance’s Ethereum liquidity shock Z-score has fallen to approximately -1.00, the lowest level in seven months. The indicator was high in early last year, dropped in February, rebounded around August, and declined again in October. This negative shift suggests that ETH liquidity flows have slowed compared to the benchmark period. Additionally, Binance’s ETH holdings have decreased alongside the falling indicator, indicating a potential reduction in exchange-held ETH supply and a possible transfer of holdings to external wallets. If this trend persists, the amount of ETH available for immediate sale on the exchange may decline. The liquidity shock Z-score measures current liquidity flows against historical averages in standard deviation terms, with positive readings indicating above-average liquidity and negative readings indicating below-average liquidity.

This content is provided for general informational purposes only and doesn't constitute financial, investment, legal, or tax advice. Any events, rewards, online promotions, or related information mentioned herein should not be considered a recommendation, solicitation, or invitation to purchase, sell, trade, or otherwise deal in any crypto assets. Crypto assets are highly volatile and may result in loss. The availability of WEEX services, products, and related events may vary by region. You are responsible for ensuring that your participation is in accordance with applicable local laws and regulations.