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I wonder how much the volatility of cryptocurrency is influenced by the stability of exchanges. Does it make the price more stable by artificially restricting t
by chrononaut 5y ago
I wonder how much the volatility of cryptocurrency is influenced by the stability of exchanges. Does it make the price more stable by artificially restricting trading, or does it ultimately induce more panic?
- anonymouse008 5y agoI'd venture to say directly -- current lvl2 data shows about 1-10% of previous order depth available. Which also asks the next question, how much of the price action and volume is automated trading in these platforms? Not that automated is necessarily good or bad - but how much is a retail interest
- yawnxyz 5y agowow what's going on with all the crypto prices today?
- viraptor 5y agoIf one exchange goes down and you have enough money to move the price on another one, that's a great opportunity for some arbitrage. That would cause at least some players to try for higher volatility. (No idea what the overall effect will be though)
- Izkata 5y agoI can't answer in general, but one thing I do remember: Litecoin didn't move in tandem with Bitcoin until after it was added to Coinbase.