On the morning of May 19, things started to get crazy again. Why do mainstream coins have deeper spikes than altcoins? It's still a liquidity issue.
High liquidity coins:
1️⃣ 10 billion in funds to protect the market, whales can't shake it
2️⃣ Buy-sell spread < 0.1%, slippage is almost zero
3️⃣ A 10% increase or decrease requires a million dollars in fuel
Low liquidity coins:
1️⃣ A million-dollar buy order can create a gap
2️⃣ Depth as thin as paper, spikes can directly trigger liquidation
3️⃣ Exchanges' proprietary trading is a major disaster area
Therefore, considering liquidity is the most expensive insurance in both bull and bear markets.