What Drives Liquidity in Crypto Markets? - Evidence from Intraday Data
Project Description
Studying the factors that drive liquidity in crypto markets is of paramount importance in today's financial landscape. Liquidity, the ease with which an asset can be bought or sold at low costs without significantly impacting its price, plays a crucial role in the efficiency and stability of financial markets. In the context of crypto assets, understanding liquidity dynamics is particularly relevant due to the unique characteristics of digital assets and their markets.
I will focus on lead-lag relationships, connectedness, and spillover effects of highfrequent intra day liquidity on centralized crypto exchanges. This project aims to provide valuable insights into market dynamics, risk management for trading crypto assets and crypto market microstructure.
I will focus on lead-lag relationships, connectedness, and spillover effects of highfrequent intra day liquidity on centralized crypto exchanges. This project aims to provide valuable insights into market dynamics, risk management for trading crypto assets and crypto market microstructure.
Relevance to Liechtenstein
Digital innovations play a significant role in the economy in Liechtenstein. Liechtenstein has an advanced regulatory framework with the Blockchain Act and promotes innovation for digital assets. These local conditions attract crypto businesses and potentially lead to new job opportunities resulting in a positive economic impact overall in Liechtenstein.
Scientific, Economic and Societal Impact
Studying the factors that drive liquidity in crypto markets is of paramount importance in today's financial landscape. Liquidity, the ease with which an asset can be bought or sold at low costs without significantly impacting its price, plays a crucial role in the efficiency and stability of financial markets. In the context of crypto assets, understanding liquidity dynamics is particularly relevant due to the unique characteristics of digital assets and their markets.
