Liquidity changes in the cryptocurrency market significantly impact price trends. High liquidity, marked by ample buyers and sellers, ensures smooth transactions with minimal price slippage, stabilizing markets and reducing volatility. Conversely, low liquidity amplifies price swings, as fewer participants lead to larger gaps between bids and asks, making assets vulnerable to sharp pumps or dumps. During bull runs, liquidity often rises with increased trading volume, fueling momentum. In bear markets, thinning liquidity can exacerbate downturns, trapping sellers in illiquid positions. External factors like regulatory news or exchange outages can also dry up liquidity, triggering erratic price behavior. Data from X posts and web analyses suggest that altcoins, with typically lower liquidity than Bitcoin, face heightened sensitivity to these shifts, often experiencing exaggerated rallies or crashes compared to more liquid assets.