The resulting panic selling by BCH holders anticipating potential mass liquidations by the Mt. Gox creditors was amplified by poor liquidity, or order-book depth, across centralized exchanges, according to Paris-based Kaiko. In a market with poor liquidity, traders find it hard to execute large orders at stable prices, and a single large buy or sell order can disproportionately influence the asset’s price, leading to a volatility explosion.
Bitcoin Cash’s (BCH) Mt. Gox-Led Sell-Off Amplified by Poor Liquidity
