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How is trading volume related to cash liquidity? An exchange with 0 fiat on/offramps and no cash in the bank could still trade billions of USD worth of cryptocu
by schmichael 5y ago
How is trading volume related to cash liquidity? An exchange with 0 fiat on/offramps and no cash in the bank could still trade billions of USD worth of cryptocurrencies a day.
- gruez 5y ago>How is trading volume related to cash liquidity It's not. The parent commentis talking about the liqudity of the market as a whole (ie. what would happen if 100M worth of bitcoin was sold at once) >An exchange with 0 fiat on/offramps and no cash in the bank could still trade billions of USD worth of cryptocurrencies a day. It would presumably have millions of USD worth of crypto in their wallet (since they charge trading fees). They can take the crypto and dump it into the very liquid bitcoin market to turn it into cash.