Physics gets weird when things are very large or very small. This is true in science and also in finance. Very drastic movements of cash on a transparent exchange can trigger sudden price movements that can change the value of the trade even before it’s completed.
Big cryptocurrency players – aka whales – rely on over-the-counter (OTC) markets to book their big buys. A whale can be a person or entity who plans to move $250,000 in fiat currency at one time.
What whales do under the surface, can create very noticeable and notable ripples in the general market which usually result in sudden price surges and other forms of price manipulation.
Liquidity in that market is restricted by the number of individuals participating in the market at any one time. It’s also restricted by what currencies carry what liquidity. Currently, the crypto markets are not as liquid as it was a year ago.
A big player in such a market can only buy what’s being offered. But, if that big buyer announces the intention to buy the price can also rise due to speculation. This manipulation