Have you ever felt that you entered a trade in the cryptocurrency market with all your enthusiasm, only for the price to suddenly collapse?
Don't worry, you are not alone.
What happens behind the scenes is bigger than just
"Natural fluctuations"… It’s a well-crafted game mastered by the big players, while the small ones pay the price.
This is not a conspiracy… but a recurring strategy that occurs in various forms: pumping liquidity and then withdrawing it.
To understand it, you must first realize who moves the market and why.
What does "liquidity withdrawal" mean? And why does it happen?
Liquidity withdrawal is the phase when large investors (whales) exit the market after a wave of enticing rises.
They sell large quantities of currencies, flooding the market with a massive supply met with weak demand. The result?
Panic spreads among small investors.
Random sell-off.
Millions in losses for those who bought at the peak.
The scary part? The market seems to have collapsed "naturally"… while the truth is that someone decided to turn off the faucet.
And what about "liquidity pumping"? How and why does it happen?
In contrast, liquidity is pumped when massive amounts enter the market, often at a calculated timing.
The goal? Not "believing in the project", but creating a wave of optimism to ride it and achieve multiplied profits.
Prices start to rise.
Media coverage becomes active.
Thousands of investors enter driven by emotions.
And when the market reaches its peak, the scenario repeats: liquidity is withdrawn, and the price collapses.
Real case: ORDI currency:
At the beginning of 2024, ORDI currency was almost forgotten, with no momentum or news to speak of.
Then suddenly, massive liquidity of over $180 million was pumped in just a few days, and its price jumped from $9 to over $35.
Intensive media coverage began.
Investors rush in enthusiastically.
Then… withdrawals began gradually as the hype increased.
The result? The currency dropped again, and many who entered at the peak lost.
Who drives this liquidity?
Whales 🐋🐳: large investors who have control over the market's course.
Institutions: enter to make quick moves and achieve multiplied profits.
Platforms: sometimes benefit from pumping emotions.
You: when you trade reactively, not with a plan.
🛑 How do you protect yourself from liquidity traps?
1. Do not enter the market at the peak of media hype.
2. Monitor trading volume as it is the most accurate indicator of market movement.
3. Track large wallets using tools like Whale Alert.
4. Always ask yourself: Am I buying with my mind… or with emotional impulse?
✨️ Summary:
In the cryptocurrency market, liquidity is the blood that revives the market or drains it of life.
Those who do not understand this game become its victims. Do not rely on luck… Rely on awareness.
✨️ Observe what others do not see, and do not be a number in the big players' game.
