Can the bid/ask size of a cryptocurrency influence its price movement?

1 answers

• Saikat GolderJan 11, 2023 · 3 years ago
  From my experience at BYDFi, the bid/ask size of a cryptocurrency can definitely influence its price movement. When there is a significant increase in the bid size, it indicates a higher demand for the cryptocurrency, which can drive up the price. Conversely, a larger ask size suggests a higher supply of the cryptocurrency, which can lead to a decrease in price. Traders often monitor the bid/ask size to gauge market sentiment and make informed trading decisions. However, it's important to note that the bid/ask size is just one factor among many that can influence the price movement of a cryptocurrency.
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