It’s something of a sign of how dramatically it would be possible for the price to crater. With less liquidity in the market a smaller amount of people trying to legitimately sell off their BitCoin could result in a massive downward spike in price. Which generally causes more people to sell, which further exacerbates how badly the lack of real buyers will lower the price. In a general sense, faking volume makes it impossible to tell what the real level of demand for something is.
Has everyone internalized that faking volume means Bitcoin’s real value to people is hard to pin down? Maybe, but it’s useful to try and pinpoint exactly how much trading is fake regardless. (30% real trading would still indicate a non-trivial portion of people who actually will buy at current price, much better than if it was 99% fake trading or something).
Has everyone internalized that faking volume means Bitcoin’s real value to people is hard to pin down? Maybe, but it’s useful to try and pinpoint exactly how much trading is fake regardless. (30% real trading would still indicate a non-trivial portion of people who actually will buy at current price, much better than if it was 99% fake trading or something).