2026-01-18 15:34:38

The Invisible Killer in the Cryptocurrency Trading Market—Liquidity Crisis

Speaking of the phenomenon of "price stabbing," it has long been a common sight in the crypto market. Small-cap coins with limited trading volume are most susceptible to such manipulation. A single bearish candle can instantly crash the price, causing leveraged positions to explode and stop-loss orders to be wiped out. This vividly illustrates the reality of insufficient liquidity.

The comparison between the US stock market and the crypto market is quite interesting. Due to the large market depth and mechanism constraints, the intensity and frequency of price stabbing are much milder in the US stock market. But what about the crypto market? Many projects have limited trading volume, and large buy or sell orders can easily stir the water. Shallow liquidity pockets are everywhere, making them natural hunting grounds for big funds to harvest.

Therefore, for retail investors, the liquidity depth of the coins they hold is often more critical than you might think. When the overall market is doing well, it may not be noticeable, but in moments of urgent escape, you'll truly understand what a rapid plunge means.

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BloodInStreets

· 6h ago

Liquidity shallow waters are like a chopping board, retail investors are like fish. I damn well am that fish pierced and driven to bankruptcy.

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MonkeySeeMonkeyDo

· 6h ago

When small-cap liquidity is shallow, it's really a gamble; a single large order can wipe you out.

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GateUser-75ee51e7

· 6h ago

Getting wiped out again, this is the price of playing with small-cap coins.

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¯\_(ツ)_/¯

· 6h ago

A small coin can wipe out an account with just one needle, this is the reality of the crypto world.

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SilentObserver

· 6h ago

Pumping and dumping is really crazy. A single bearish candle can wipe out your entire position, and it happens every time. --- Coins with shallow liquidity are the most dangerous; you can't even run away. --- The mechanism on the US stock market is much more mature. The wild state of the crypto world really traps retail investors. --- That's right, you can't feel the bull market, but in a bear market, you realize what being trapped really means. --- For small-cap coins, poor liquidity turns them into a hunting ground for big funds. There's nothing much to say. --- Leverage traders suffer the most. If there's a pump and dump, they lose everything, earning less than they lose. --- So, it's better to choose mainstream coins. Small-cap coins are indeed risky. --- A large order coming in can throw the entire market into chaos. That's the current state of the crypto world. --- Only in emergencies do you realize the importance of liquidity. It's too late then.

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