The needle is back. Why are Bitcoin and Ethereum more resilient than altcoins?
In the early hours of May 19, the market saw unusual movements, and the old problem resurfaced: why are mainstream coins always 'shallow'? The core issue is still the disparity in liquidity.
High liquidity coins (like Bitcoin and Ethereum): supported by a market cap of tens of billions, even whales dare not act rashly.
The buy-sell spread is extremely narrow, and slippage is almost zero.
To pump/dump by 10%, it requires burning over a million dollars.
Low liquidity coins (most altcoins):
A few hundred thousand dollars can directly 'paint the door'.
Depth as thin as paper, a single needle can pierce through without negotiation.
Easily manipulated by the exchange's 'proprietary trading', the risks are much higher.
Therefore, liquidity is the lightning rod in the market; during bull and bear transitions, it is your most expensive 'insurance'. For more on-chain observations, remember to follow MoKe.