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RE: Volatility Is A Part Of Crypto: Get Use To It

in Threespeak3 months ago

I wonder if the biggest reason for this volatility is the liquidity in the market. Thus once the sellers or buyers start dwindling on one side, one side takes control and because the lack of buyers/sellers, they push it far in one direction. In the crypto markets, we don't exactly have market makers so it tends to swing in both directions really far.

Although long term, bitcoin will rise because the amount of bitcoin is limited and some have been lost or stored away.

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That could well be the case. Liquidity certainly impacts markets. So does market size and crypto is still very small overall so it is prone to higher bouts of volatility.

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