In the world of cryptocurrency, especially Bitcoin, sudden price movements are very common. Two important terms you must understand are Pump and Dump.
Pump refers to a sudden, sharp increase in Bitcoin’s price. This can happen for many reasons — good news, a big investor buying a large amount, or even coordinated efforts by groups to artificially raise the price. When Bitcoin pumps, people rush to buy, thinking the price will go even higher.
Dump happens immediately after a pump. Once the price is high, the people who pushed it up start selling their Bitcoin to make profits. This sudden selling causes the price to crash rapidly. Many innocent traders who bought at the top suffer heavy losses.$BTC
