#questions_answers

The market is a constant struggle for liquidity. But what is liquidity and why is it so important?

When we buy an asset, we need someone to sell it at that moment; otherwise, the transaction is impossible. This is liquidity. Similarly, when selling an asset, a buyer is needed 🔄

Liquidity is the ability of assets to quickly turn into money without significant fluctuations in their price.

Now let's figure out why large players "dump passengers".

When the price of an asset rises, as a rule, both large players and hamsters (small traders) begin to accumulate longs. However, when the price reaches a certain zone of interest for sales, whales want to sell as many of their assets as possible.

It is important to understand that liquidity is always limited ⚠️

Therefore, in order to ensure the necessary liquidity, large players use manipulation and arrange a sale, thus creating an opportunity for large transactions.

They get rid of unnecessary “passengers” in order to be able to successfully exit their positions without causing sharp fluctuations in the market🧲