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These past few days, I’ve been observing the market trends and I can’t help but feel that the liquidity situation in the crypto space is quite frustrating. Some small-cap coins can be easily pushed through the 7,000+ price level, which shows how dire the trading depth really is. Even more outrageous is that on certain trading pairs, Bitcoin can be moved within a range of over 20,000 in a single move—what kind of concept is that? How shallow does the order book have to be to allow such a situation?
Thinking carefully, this is not just an issue with individual coins. In trading pairs with insufficient volume, even with not very large funds, the price trend can be easily reversed—this is what’s known as the "pinning" phenomenon. Insufficient liquidity means a lack of genuine market participation depth, which gives large traders ample room for manipulation.
What does this reflect? On one hand, some small coins have inherently fragile fundamentals; on the other hand, it exposes the current market structure’s imbalance. Liquidity is concentrated at the top, while long-tail coins face a harsh trading environment. Such an ecosystem poses significant risks for retail investors. For the market to truly mature, it needs more genuine trading participants and deeper trading depth to improve the situation.