A high - liquidity cryptocurrency market, with a large number of buyers and sellers and a high trading volume, is more stable. When there is sufficient liquidity, large - scale transactions can be executed without causing significant price fluctuations. In contrast, low liquidity can lead to price slippage, where a large buy or sell order can cause a substantial price change. A lack of liquidity can also make it difficult for investors to enter or exit positions, which can increase market volatility. For example, in a low - liquidity market, a small number of large - scale sellers can cause a sharp price drop, and it may take a long time for the market to recover due to the limited number of buyers willing to step in.