@surge6

Flash crashes are sudden, sharp declines in the price of a cryptocurrency, typically driven by high-frequency trading, market manipulation, or liquidity shortages. These rapid price drops can create panic among traders and investors, leading to a cascade of sell-offs. The lack of liquidity in certain markets, especially with smaller or newer coins, can exacerbate these crashes. Flash crashes can cause significant short-term volatility and may distort price discovery, making it harder to assess an asset’s true market value. They can also discourage retail investors, increase market uncertainty, and make the crypto market seem less stable, despite its long-term potential.

0 reply

0 recast

0 reaction