#CryptoMarketRecovery Key Market Mechanics During the Surge
1. The Liquidity Vacuum
While volume surged (+180% to +250%) due to panic hedging, actual liquidity (market depth) collapsed by nearly 50%. This is a classic "hollow market" scenario:
Wider Spreads: Executing large orders became incredibly expensive.
Risk Premiums: War-risk insurance for tankers jumped 300%, effectively "taxing" every barrel before it even left the dock.
2. The Strait of Hormuz Bottleneck
The restriction of the Strait didn't just affect oil; it paralyzed 25% of seaborne trade and a massive portion of global LNG. This