Question Can a $200K LTC Transfer Move the Market? Exploring the Impact of Rapid Crypto Trades

[Houdini]

If I transfer $200,000 USD in LTC, do you think it could cause the price to drop? And what if I exchanged back and forth 10 times over a few hours; would it be visible in the price?

 

[void]

Houdini said:
If I transfer $200,000 USD in LTC, do you think it could cause the price to drop? And what if I exchanged back and forth 10 times over a few hours; would it be visible in the price?
Click to expand...

no way

 

[Houdini]

How much would I need to move to get the price drop ? I would like a realistic number if possible?

2M, 10M or more?

 

[JohnnyDoe]

You don't trade 7 figures in the open market, unless you want to deliberately cause short term spikes.
Use a OTC desk and you will also get a better price.

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[void]

this is just kraken - so it might give you a high level idea how big is the wall you need to knock down...
not mentioning all the dynamic liquidity provided by cross-exchange bots on demand

 

[JohnnyDoe]

This is binance, you can play by the tick if you enjoy it:

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[diatessaron]

Houdini said:
If I transfer $200,000 USD in LTC, do you think it could cause the price to drop? And what if I exchanged back and forth 10 times over a few hours; would it be visible in the price?
Click to expand...

No, it wouldn't move the price, even if you buy and sell a million times. As of right now, to impact the price of LTC on Binance you need at least 30,000,000 USDT for the USDT pair.

It's not a one man job.

 

[JohnnyDoe]

diatessaron said:
No, it wouldn't move the price, even if you buy and sell a million times. As of right now, to impact the price of LTC on Binance you need at least 30,000,000 USDT for the USDT pair.

It's not a one man job.
Click to expand...

If you play with the book you don't necessarily need to actually trade big amounts to cause some movements. Just look at what liquidity providers regularly do. That's why iceberg orders exist and should be used if you are concerned about short term market alterations.

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[lavel]

I've seen and read that major investors like BlackRock, which holds billions in Bitcoin, can easily move the BTC market, and they probably do so directly or indirectly.

So, the same would likely be possible with any other cryptocurrency, which is probably why it doesn't have high credibility until it's fully regulated and market manipulation becomes punishable.

 

[wonderfulboy]

That would be funny if 200K could do that I would be all in my friend.

 

[JohnnyDoe]

Any amount, no matter how small, “moves” the market, by definition. And at the same time no amount, no matter how big, moves the market. It's a question of perspective and time frame.

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