Have you ever wondered why Bitcoin struggles to increase by even 5%, while some cryptocurrencies priced at $0.000x can surge 50 to 100% overnight?
This is not a coincidence, this price increase stems from three main drivers.
The Market Capitalization Problem
🔹And this is the most important reason. A small boat is easily pushed around by the waves.
For BTC to increase by a mere 5%, the market needs trillions of USD. This requires global participation.
A coin with a market capitalization of just $1 million would double in price if just one whale invested another $1 million.
The smaller the coin, the less upward momentum is needed, and the easier it is for the price to sky rocket.
🔸 Human Psychology, Preferring Quantity
F0 investors often get stuck with the thought, Spending $100 to get a small amount of Bitcoin is boring. Spending $100 to buy a large quantity is easier to get rich with!
This preference for large quantities and the belief that it's easy to get rich creates a huge buying demand from small investors, driving prices up due to the artificial scarcity.
🔹Because of the low price and thin liquidity, Market Manipulators can easily control the game. They can easily accumulate all the floating stock and artificially inflate the price to attract your attention, then dump.
Cheap coins that surge in price are often due to high speculation and small market capitalization, not necessarily because of a genuine project. This is the fastest way to make money, but also the fastest way to lose your account.
This article is for reference only, this is not investment advice. Please read and consider carefully before making a decision.
