The Liquidity Transition of Bitcoin in Asia — Q4 2025 Outlook

Overview

BTC market depth across major Asian venues has normalised after the 2024 deleveraging cycle. We examine shifts in capital efficiency, the redistribution of liquidity, and the role of institutional market makers in stabilising spreads.

Key Takeaways

• Liquidity concentration remains high on a few venues, but capital efficiency is improving through cross-margin frameworks.
• Structural leverage has moderated, reducing the frequency of liquidation cascades during overnight trading windows.
• Asia-led trading hours show rising influence on intraday volatility regimes as Western participation consolidates.

Market Depth Signals

Depth-of-book metrics across BTC perpetual pairs now sit 18% above their twelve-month trailing average when measured at ±1% from mid, indicating a broader network of resting liquidity. Regional market makers continue to recycle inventory between Hong Kong, Singapore, and Seoul exchanges to maintain orderly spreads.

This analysis is for educational purposes only and does not constitute investment advice.

We continue to monitor funding spreads and cross-venue basis to quantify where liquidity providers are willing to warehouse risk and where pricing dislocations may emerge.