Altcoin Pumps: It’s Not Always About the News
Despite what headlines may suggest, most altcoin pumps aren't driven by groundbreaking partnerships or technological innovation. Instead, many are rooted in something less flashy liquidity access.
The Truth About Liquidity Events
Market makers and institutional players often rotate liquidity across different coins, especially low-cap altcoins. When they enter a market, they inject large amounts of capital, tightening the spread and driving prices up. When they exit? It crashes hard.
These liquidity-driven pumps often follow a predictable cycle:
Quiet accumulation
Sudden massive pump
Retail FOMO
Market maker exit
Price collapse
This is why coins with no real news or product updates can skyrocket it’s not about fundamentals, but flow of capital.