Bitcoin liquidity refers to its ability to be quickly bought and sold without significantly impacting the price, primarily depending on trading volume and order book depth. Mainstream exchanges have an average daily trading volume exceeding 10 billion, with sufficient depth, resulting in almost no slippage for small retail trades. Institutional participation (such as ETFs and custodial services) and the development of derivatives markets further enhance liquidity. However, in extreme market conditions, large-scale sell-offs may cause short-term liquidity shortages and exacerbate volatility. Overall, Bitcoin is already a highly liquid asset but still carries structural risks.